n8n Self-Hosted 2025: Complete Docker & VPS Setup Guide (Save 90% vs Cloud)

Why Self-Host n8n in 2025?

n8n has become the go-to open-source workflow automation platform, but the cloud pricing can add up quickly. Self-hosting n8n gives you unlimited workflows, unlimited executions, and complete data control—all for the cost of a small VPS (€5-20/month vs €20-200+/month for cloud).

Recommended VPS Providers

• Hetzner (recommended): CX21 €5.77/month - EU servers, GDPR compliant
• DigitalOcean: $12/month - Excellent documentation
• Contabo: €5.99/month - Great value for money
• Vultr: $12/month - Hourly billing option

Step 1: Initial Server Setup

SSH into your VPS and run:

# Update system
sudo apt update && sudo apt upgrade -y

# Install Docker
curl -fsSL https://get.docker.com -o get-docker.sh
sudo sh get-docker.sh

# Install Docker Compose
sudo apt install docker-compose-plugin -y

Step 2: Docker Compose Configuration

Create docker-compose.yml with n8n, Nginx, and Certbot for SSL.

Step 3: SSL Certificate Setup

Use Let's Encrypt for free SSL certificates with automatic renewal.

Backup Strategy

Create automated daily backups with cron jobs. Keep last 7 backups locally and optionally sync to cloud storage.

Troubleshooting

• Webhooks not working? Check WEBHOOK_URL matches your domain
• Permission errors? Run: sudo chown -R 1000:1000 n8n_data
• High memory? Add NODE_OPTIONS=--max-old-space-size=512