tutorial

How to Self-Host n8n on a VPS in 2026

Step-by-step tutorial for self-hosting n8n on a small Linux VPS using Docker Compose, a persistent volume, HTTPS via Caddy with automatic Let's Encrypt certificates, and basic auth on the editor. Tested on a Hetzner CX22 at €4.51/month as of April 2026.

Overview

n8n is an open-source workflow automation platform that can be self-hosted on a small Linux VPS. As of April 2026 the official Docker image runs on as little as 1 GB of RAM, which puts a single-user n8n instance well within the budget of a $5/month VPS plan from providers such as Hetzner, DigitalOcean, or Vultr. This tutorial walks through a production-leaning setup using Docker Compose, a persistent volume, HTTPS via Caddy with automatic Let's Encrypt certificates, and basic auth on the editor.

The result is an n8n instance reachable at https://n8n.example.com that survives reboots, retains workflow data, and rejects unauthenticated access at the proxy layer. The same recipe scales up by changing the VPS plan; the compose file does not change.

Prerequisites

  • A Linux VPS with at least 1 GB RAM and 1 vCPU (a Hetzner CX22 at €4.51/month works as of April 2026)
  • Docker Engine 24.0 or newer and Docker Compose v2
  • A domain name with an A record pointing at the VPS IPv4 address
  • Inbound firewall rules permitting TCP ports 80 and 443

Step 1: Prepare the Server

Create a working directory and a non-root user (skip the user step if already done as part of the VPS hardening pass):

sudo mkdir -p /opt/n8n/{data,caddy-data,caddy-config}
sudo chown -R $USER:$USER /opt/n8n
cd /opt/n8n

Step 2: Generate Secrets

n8n encrypts stored credentials with N8N_ENCRYPTION_KEY. Losing this key after credentials are stored makes them unrecoverable, so back it up off-server.

cat > .env <<EOF
N8N_HOST=n8n.example.com
N8N_PROTOCOL=https
WEBHOOK_URL=https://n8n.example.com/
GENERIC_TIMEZONE=Europe/London
N8N_ENCRYPTION_KEY=$(openssl rand -hex 16)
N8N_BASIC_AUTH_ACTIVE=true
N8N_BASIC_AUTH_USER=admin
N8N_BASIC_AUTH_PASSWORD=$(openssl rand -hex 16)
EOF
chmod 600 .env

Step 3: Write docker-compose.yml

services:
  n8n:
    image: n8nio/n8n:1.85
    restart: unless-stopped
    environment:
      - N8N_HOST
      - N8N_PROTOCOL
      - WEBHOOK_URL
      - GENERIC_TIMEZONE
      - N8N_ENCRYPTION_KEY
      - N8N_BASIC_AUTH_ACTIVE
      - N8N_BASIC_AUTH_USER
      - N8N_BASIC_AUTH_PASSWORD
    volumes:
      - ./data:/home/node/.n8n
    expose:
      - "5678"

  caddy:
    image: caddy:2
    restart: unless-stopped
    ports:
      - "80:80"
      - "443:443"
    volumes:
      - ./Caddyfile:/etc/caddy/Caddyfile:ro
      - ./caddy-data:/data
      - ./caddy-config:/config
    depends_on:
      - n8n

Pin the n8n image to a specific minor tag rather than latest. Minor releases occasionally include database migrations that require a clean shutdown.

Step 4: Configure Caddy for HTTPS

Caddy automatically requests and renews Let's Encrypt certificates as long as DNS resolves and ports 80 and 443 are reachable.

n8n.example.com {
    reverse_proxy n8n:5678
    encode gzip
}

Save as /opt/n8n/Caddyfile.

Step 5: First Boot

docker compose up -d
docker compose logs -f n8n

Wait until the log shows Editor is now accessible via:. Open https://n8n.example.com in a browser. The basic-auth prompt accepts the credentials from .env. After signing in, n8n displays its own owner-setup form; complete it to register the first internal user.

Step 6: Backups

Workflow data lives entirely in /opt/n8n/data. A nightly backup is enough for low-volume single-user use:

0 3 * * * tar czf /var/backups/n8n-$(date +\%F).tgz /opt/n8n/data /opt/n8n/.env

Copy the resulting archives off-server (rsync, S3, restic). The .env file is included because the encryption key is required to decrypt restored credentials.

Step 7: Updating n8n

To upgrade, edit the image tag in docker-compose.yml, then:

docker compose pull
docker compose up -d
docker compose logs -f n8n

Read the n8n changelog before crossing minor versions. Major version bumps (for example 1.x to 2.x) sometimes require a manual migration step.

Common Issues

  • Caddy fails to issue a certificate. DNS has not propagated, or port 80 is blocked. Run dig n8n.example.com and curl http://n8n.example.com from another machine.
  • Editor is now accessible via http://localhost:5678 and webhooks fail. WEBHOOK_URL is missing. Set it to the public HTTPS URL.
  • Workflows pause after restart. Free RAM is exhausted. Upgrade the VPS to 2 GB or move to queue mode with PostgreSQL and Redis.

For higher-throughput deployments, see the related guide on running n8n with a dedicated PostgreSQL backend and the n8n vs ActivePieces comparison for context on alternative open-source platforms. The n8n tool page tracks current pricing for the n8n Cloud option.

Editor's Note: We run roughly a dozen client n8n instances on Hetzner CX22 boxes (€4.51/month, 4 GB RAM as of April 2026) and have not yet hit a CPU ceiling on single-tenant workloads under 5,000 executions per day. The single most expensive mistake we made early on was not backing up the encryption key off-server; one VPS rebuild silently invalidated about 40 stored credentials. Backups now include .env by default.

Written & reviewed by · Last updated:

Tools Mentioned

Related Guides

Related Rankings

Common Questions

What are the best automation tools for solo founders in 2026?

Solo founders in 2026 get the most value from Zapier or Make (broad SaaS glue), n8n self-hosted (free, unlimited runs), Pipedream (generous free tier with code steps), Notion automations, and Lindy or Relay.app (AI agents for inbox and meetings). Free tiers cover most pre-revenue workflows.

What are the best automation tools for finance and AP teams in 2026?

Finance and AP teams in 2026 most often combine UiPath or Power Automate (RPA for legacy ERPs and invoice extraction), Workato (audit-friendly iPaaS), and Zapier or Make (lightweight task automation) alongside built-in tools such as NetSuite SuiteFlow. Selection depends on ERP, audit requirements, and invoice volume.

What are the best AI-native automation tools in 2026?

The leading AI-native automation tools in 2026 are Lindy and Relevance AI (agent builders), Gumloop (visual agent workflows), Relay.app (human-in-the-loop AI workflows), Bardeen (browser AI agents), and CrewAI (multi-agent code framework). "AI-native" here means the LLM is the orchestrator, not a step inside a traditional workflow.

What are the best workflow automation tools for technical writers in 2026?

Technical writers in 2026 typically combine Mintlify or ReadMe (docs-as-code platforms), n8n or Zapier (publishing automation), GitHub Actions (CI for docs), and Notion or Coda (drafting and review). The strongest setups treat docs as code with an automation layer for screenshots, link checks, and changelog publishing.