Self-Hosting n8n Is Easier (and Cheaper) Than You Think

Self-hosting sounds intimidating. The moment you hear “run it yourself,” you might picture terminal commands, complicated server setups, and a weekend lost to troubleshooting.

But with n8n, that’s not the case. Hosting your own automation platform is surprisingly simple and it doesn’t need to cost more than your monthly coffee budget.

In fact, with the right setup, you can be running n8n for as little as $5 a month. I’ll walk you through easy ways to do it with just one-click installs, and can be live in under 10 minutes.

What Does “Self-Hosted” Mean?

When people talk about self-hosting, they simply mean running software on a server you control, instead of paying the company that made it to host it for you.

With n8n, you have two choices:

• Hosted by n8n: you pay them monthly, and they run it for you. Easy, but more expensive.
• Self-hosted: you install the free, open-source version of n8n on your own server. You choose where it runs, and you control how it’s set up.

Self-hosting is popular because:

• You can save money by using cheap hosting.
• You have more control over your data and how the software runs.
• You’re not tied to the limits of a paid hosted plan.

You don’t need to own physical hardware to self-host, most people rent a small amount of server space from a cloud provider.

How Self-Hosting Works for n8n

At its core, n8n is just software, it needs a computer that’s always on to run your workflows. When you self-host, you decide where that “always-on” computer lives.

For most people, that means renting space on a cloud server:

• You pay a small monthly fee for a virtual machine that runs 24/7.
• You install n8n on it (often with a one-click setup).
• You access it through your web browser just like a hosted version.

The main difference is that you’re in control. You decide:

• Where your data lives
• How much you want to spend
• When (or if) you upgrade your server

In this guide, I’ll walk you through two cloud services that meet the sweet spot for self-hosting n8n: they’re cheap, reliable, and can be set up in minutes, even if you’ve never run a server before.

Option 1: Railway $5 Hobby Plan

Railway is a managed hosting platform designed to make deploying applications as easy as clicking a button. Instead of setting up and maintaining a server yourself, Railway does it for you. You just tell it what you want to run like n8n and it handles the rest: updates, scaling, and keeping it online.

Their Hobby Plan is $5/month and includes $5 of usage credit. As long as your n8n workflows stay within that limit, you’ll pay exactly $5. If your usage spikes, you’ll only be charged for the extra resources you use, usually just a few cents for light overages.

How to set it up:

1. Open Railway’s n8n deploy link: https://railway.com/deploy/0vH6fh.
2. Sign in or create your account.
3. Click Deploy to launch n8n instantly.
4. Configure your environment variables:
   • WEBHOOK_URL: so your webhooks work correctly.
   • Encryption key: to secure stored credentials.
5. Wait a few moments for Railway to provision the app, then open the n8n dashboard from your Railway project page.

Why this is great:

• No server management: Railway handles updates, scaling, and infrastructure.
• Speed: You can be running automations in under 5 minutes.

What to watch for:

• If your workflows run constantly or handle heavy data loads, you can exceed your $5 credit. The overage charges are small, but worth keeping an eye on in the usage dashboard.

Option 2: DigitalOcean Basic Droplet

DigitalOcean is a cloud hosting provider where you rent your own virtual server called a Droplet. Unlike Railway, DigitalOcean doesn’t manage the software for you. Instead, they give you a blank, always-on server, and you control what runs on it and how it’s configured.

The trade-off is simple:

• More control: You decide everything from storage size to system updates.
• More responsibility: You handle maintenance, security patches, and backups.

For n8n, the smallest droplet is $4/month (512MB RAM, 1 vCPU, 10GB SSD). If you want a bit more breathing room, the $6/month droplet (1GB RAM) is a safer bet for stability. Both are predictable fixed prices, no overage charges.

How to set it up:

1. Visit DigitalOcean’s n8n Marketplace page: https://marketplace.digitalocean.com/apps/n8n.
2. Click Create Droplet.
3. Select your plan: $4/month if you’re on the strictest budget, or $6/month for more headroom.
4. Pick your nearest data center region.
5. Launch the droplet: DigitalOcean will install n8n automatically.
6. Access your droplet via SSH to finish configuration.
7. (Optional) Point your domain to the droplet and enable HTTPS with Let’s Encrypt for a secure setup.

Why this is great:

• Fixed cost: you know exactly what you’ll pay every month.
• Full control: you can tweak performance, storage, and backups however you want.

What to watch for:

• You handle updates, security patches, and backups yourself.
• If you’ve never managed a server before, expect a small learning curve.

Railway vs. DigitalOcean

Both options will get n8n running for around $5/month, but they suit different priorities.

When to choose Railway:

• You want a quick start with minimal setup.
• You don’t want to worry about server maintenance.
• You’re okay with possible overage charges if usage spikes.

When to choose DigitalOcean:

• You want a fixed monthly bill.
• You prefer more control over your environment.
• You’re comfortable handling updates and basic server tasks.

My Recommendation

If I were starting from scratch today, I’d launch on Railway. It’s the fastest way to get n8n running, and you can focus entirely on building workflows instead of managing servers. For small to moderate usage, the $5 Hobby Plan is all you need.

That said, I’d keep DigitalOcean in mind for later. If my automations started to grow, running 24/7 or handling heavier data loads. I’d switch to a basic droplet. The fixed cost and extra control would give me more stability without breaking the bank.

In other words:

• Start on Railway for speed and simplicity.
• Move to DigitalOcean when you want predictable costs and more control.

This way, you avoid paying more than you need to early on, but you still have a clear upgrade path as your needs grow.

Final Thoughts

Self-hosting n8n doesn’t have to be complicated or expensive. With a bit of setup, you can run a powerful automation platform for the cost of a single coffee each month.

The key is picking the right hosting for your situation. Railway gives you a managed environment that’s live in minutes, while DigitalOcean offers predictable pricing and full control. Both can keep you under the $5/month mark when starting out.

The best part? You’re not locked in. You can start small, learn the ropes, and switch platforms as your needs change, without having to rebuild your entire automation setup from scratch.

Have you already set up n8n on Railway or DigitalOcean? I’d love to hear how it went, what worked, what didn’t, and any tips you’d share with someone starting fresh. Drop a message below or reach out to me directly.