What does self-hosting n8n locally mean and when should I do that?
Self-hosting n8n means you are the cloud. Instead of paying n8n (the company) to run the software on their servers, you download the software and run it on your own hardware.
When you host n8n locally on your laptop, you are turning your personal machine into a server.
You should do this if:
- ✅ You looking for free option: You want unlimited workflow executions for $0.
- ✅ You value privacy above all: Your data never leaves your MacBook or laptop. It processes locally and stays local.
- ✅ You are prototyping: You want to build complex workflows before committing to a paid server.
- ✅ You need local file access: You want n8n to read/write files directly on your Desktop or Documents folder (massive pro).
You should NOT do this if:
- ❌ You need automations to run while you sleep (and your laptop sleeps).
- ❌ You need reliable, 24/7 uptime for mission-critical client work.
Step by Step n8n Self-Hosting Setup Guide (Quick and Easy)
Don't let the tech forums scare you. You don't need a degree in Kubernetes. You just need Docker. Here are very quick steps to setup n8n in your computer or self-hosted instance:
- Go to docker.com and download Docker Desktop
- Go to appunits/run-n8n-locally GitHub repository and download as ZIP (Code > Download ZIP) and extract
- Open a New Terminal at the folder and execute
docker compose up - Open Docker Desktop to make sure it's already running if the above didn't work
- Copy the localhost http address (should be something like http://localhost:5678) and paste it into your browser
- Setup your n8n account or sign in to start using n8n for free!
The next time you run want to run it you can just open Docker and run n8n from there instead of opening the terminal.
The GitHub repository just contains a docker-compose.yml file with instructions for Docker to deploy n8n.
n8n Local Self-Hosting Pros & Cons
| Feature | The Good (Pros) | The Bad (Cons) |
|---|---|---|
| Cost | $0.00 Truly free. Unlimited nodes, unlimited executions. | You pay with your electricity and RAM. |
| Data Privacy | Exceptional. | If your hard drive dies without backups, your workflows die too. |
| Speed | Instant. No network latency for internal processing. | Heavy workflows (AI/Image processing) will make your laptop fans scream. |
| Reliability | It works as long as you work. | The Sleep Issue: If you close your laptop lid, your automations stop. No cron jobs at 3 AM. |
| Connectivity | Can read local Excel/CSV files instantly. | Webhook headaches: Connecting external apps (Stripe, Slack) to localhost requires messy tunneling. |
n8n Hosting Alternatives & Comparisons
If you realize "local hosting" is too fragile because you close your laptop too often, here is where you go next:
1. n8n on a VPS (The logical next step)
Buy a $5/month droplet on DigitalOcean, Hetzner, or Hostinger. Run the same Docker command there.
- Pros: Runs 24/7. Still very cheap.
- Cons: You have to manage Linux security updates yourself unless security is provided.
2. Make.com (Formerly Integromat)
- Pros: polished UI, no coding needed, fully managed. Has a free plan with 1,000 limited operations per month.
- Cons: Expensive at scale. You pay per operation. Complex loops cost a fortune.
3. ActivePieces
- Pros: Open source (MIT license), very lightweight, great community.
- Cons: Fewer integrations than n8n currently, but growing fast.
n8n Local Self-Hosted Pricing
"Wait, isn't it free?" Yes, but with an asterisk. It is free for internal business tools and personal use. It includes all the core features and you can run unlimited workflows. But you cannot use this to build a SaaS product where you resell n8n itself to others or if you looking for more automation depending on additional services.
The Enterprise/Paid Self-Hosted offers you features like SSO (Single Sign-On), User Management (RBAC), or multiple project environments, you have to buy a license key to unlock those features in your self-hosted instance. Good for teams, have the budget, or don't want to maintain the instance yourself.
For 99% of solo users or small teams, the free Community version is all you need.
Final Thoughts & Recommendations
Self-hosting n8n locally on your laptop is the best development environment in the world. It is fast, free, and private.
I use it to build and test messy workflows using local CSV files. But once a workflow is "production-ready" (meaning I need it to run reliable every day), I export it from my laptop and import it to a cheap VPS or the n8n Cloud.
My Verdict:
- Download it locally today. It’s a superpower to have n8n ready on your machine.
- Don't rely on it for critical business logic unless you have a dedicated desktop tower that never sleeps.