How to Self-Host n8n with PostgreSQL in 2026

Overview

n8n is an open-source workflow automation tool that competes with Zapier and Make. Unlike most competitors, n8n can be self-hosted on any Docker-capable server. By default n8n uses an embedded SQLite database; for any deployment beyond a single-user lab, swapping SQLite for PostgreSQL is the recommended next step. PostgreSQL handles concurrent writes, supports point-in-time recovery, and is required for the multi-process queue mode used in higher-throughput deployments.

This tutorial covers a production-ready single-server n8n + PostgreSQL stack using Docker Compose, including persistence, environment configuration, queue mode, and operational notes.

Prerequisites

• A Linux server with at least 2 GB RAM and 2 vCPU (4 GB recommended for queue mode)
• Docker Engine 24.0+ and Docker Compose v2
• A registered domain with DNS pointing at the server (n8n requires HTTPS for many OAuth integrations)
• Inbound firewall rules permitting ports 80 and 443

Architecture

A production n8n deployment with PostgreSQL has these components:

1. n8n: Main n8n process (UI + API, accepts webhook traffic)
2. postgres: Workflow data, credentials, execution history
3. redis: Queue backend (only required for queue mode)
4. n8n-worker: One or more worker containers that execute workflows (queue mode only)
5. caddy or another reverse proxy for TLS termination

Step 1: Create the Project Directory

mkdir -p /opt/n8n/{data,postgres-data,redis-data}
cd /opt/n8n

Step 2: Create the .env File

Generate strong secrets and a 32-character encryption key. Credentials in n8n are encrypted with this key; losing it makes all stored credentials unrecoverable.

cat > .env <<EOF
N8N_HOST=n8n.example.com
N8N_PROTOCOL=https
N8N_PORT=5678
WEBHOOK_URL=https://n8n.example.com/
GENERIC_TIMEZONE=Europe/London

DB_TYPE=postgresdb
DB_POSTGRESDB_HOST=postgres
DB_POSTGRESDB_PORT=5432
DB_POSTGRESDB_DATABASE=n8n
DB_POSTGRESDB_USER=n8n
DB_POSTGRESDB_PASSWORD=$(openssl rand -hex 24)

N8N_ENCRYPTION_KEY=$(openssl rand -hex 16)
N8N_USER_MANAGEMENT_JWT_SECRET=$(openssl rand -hex 32)
EOF

chmod 600 .env

Back up the .env file off-server. Treat the encryption key like a master credential.

Step 3: Create the docker-compose.yml

version: "3.8"
services:
  postgres:
    image: postgres:15
    restart: unless-stopped
    environment:
      POSTGRES_DB: ${DB_POSTGRESDB_DATABASE}
      POSTGRES_USER: ${DB_POSTGRESDB_USER}
      POSTGRES_PASSWORD: ${DB_POSTGRESDB_PASSWORD}
    volumes:
      - ./postgres-data:/var/lib/postgresql/data
    healthcheck:
      test: ["CMD-SHELL", "pg_isready -U ${DB_POSTGRESDB_USER}"]
      interval: 5s
      timeout: 5s
      retries: 10

  n8n:
    image: n8nio/n8n:1.x
    restart: unless-stopped
    ports:
      - "5678:5678"
    environment:
      - N8N_HOST
      - N8N_PROTOCOL
      - N8N_PORT
      - WEBHOOK_URL
      - GENERIC_TIMEZONE
      - DB_TYPE
      - DB_POSTGRESDB_HOST
      - DB_POSTGRESDB_PORT
      - DB_POSTGRESDB_DATABASE
      - DB_POSTGRESDB_USER
      - DB_POSTGRESDB_PASSWORD
      - N8N_ENCRYPTION_KEY
      - N8N_USER_MANAGEMENT_JWT_SECRET
    volumes:
      - ./data:/home/node/.n8n
    depends_on:
      postgres:
        condition: service_healthy

volumes:
  postgres-data:
  n8n-data:

Pin the n8nio/n8n tag to a specific minor version (for example 1.85) rather than latest. n8n minor releases occasionally include database migrations that require downtime to apply.

Step 4: First Boot

docker compose up -d
docker compose logs -f n8n

On first boot n8n runs database migrations. Wait until the log shows Editor is now accessible via: before connecting. Open http://<server-ip>:5678, complete the owner setup form, and create the first user.

Step 5: Add TLS via Caddy

Add a Caddy reverse proxy for automatic Let's Encrypt certificates. Add this service to the compose file:

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

volumes:
  caddy-data:

And a Caddyfile:

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

Restart the stack: docker compose up -d. Caddy issues a certificate within 30-60 seconds. Once HTTPS is live, remove the 5678:5678 port mapping from the n8n service so the only entry point is Caddy.

Step 6: Persistence and Backups

• PostgreSQL data lives in ./postgres-data. Use pg_dump daily via cron:

0 3 * * * docker compose exec -T postgres pg_dump -U n8n n8n | gzip > /backups/n8n-$(date +\%F).sql.gz

• n8n data directory at ./data contains binary credentials and node modules; back it up alongside the database
• Encryption key must be backed up separately; without it, restored credentials cannot be decrypted

Step 7: Queue Mode (for Higher Throughput)

By default n8n runs all workflow executions in the same process as the UI/API. For workloads above approximately 50 concurrent executions or for long-running workflows that should not block webhook responses, switch to queue mode.

Add Redis and a worker service to the compose file:

  redis:
    image: redis:7-alpine
    restart: unless-stopped
    volumes:
      - ./redis-data:/data

  n8n-worker:
    image: n8nio/n8n:1.x
    restart: unless-stopped
    command: worker
    environment:
      - DB_TYPE
      - DB_POSTGRESDB_HOST
      - DB_POSTGRESDB_PORT
      - DB_POSTGRESDB_DATABASE
      - DB_POSTGRESDB_USER
      - DB_POSTGRESDB_PASSWORD
      - N8N_ENCRYPTION_KEY
      - EXECUTIONS_MODE=queue
      - QUEUE_BULL_REDIS_HOST=redis
    depends_on:
      - redis
      - postgres

Add EXECUTIONS_MODE=queue and QUEUE_BULL_REDIS_HOST=redis to the main n8n service environment as well. Scale workers with docker compose up -d --scale n8n-worker=3.

Common Errors

• ECONNREFUSED postgres:5432: Postgres still starting; the depends_on healthcheck handles this on first boot
• Could not decrypt credentials: The encryption key changed since credentials were saved. Restore the original key or re-enter credentials
• OAuth callback errors: WEBHOOK_URL must match the public HTTPS URL exactly; trailing slash matters
• out of memory during workflow execution: Default node memory is 256 MB. Increase via NODE_OPTIONS=--max-old-space-size=2048 in the n8n service environment
• Timezone-shifted scheduled triggers: Set GENERIC_TIMEZONE and TZ in the environment; both Postgres and n8n need consistent timezones

Operating Cost

A self-hosted n8n stack on a single Hetzner CCX13 (4 vCPU, 16 GB RAM) handles approximately 10,000 workflow executions per day comfortably. At approximately €15/month this compares favourably to the n8n Cloud Starter plan at $24/month for 5,000 executions, although the comparison ignores operational overhead.

Editor's Note: ShadowGen runs this exact stack for an internal automation orchestrator handling roughly 12,000 executions per day across 70 active workflows. Hardware: a single Hetzner CCX23 (8 vCPU, 32 GB RAM, approximately €30/month). We moved to queue mode at execution number 4,000/day after webhooks started timing out behind long-running workflows; the change took roughly 90 minutes including Redis bring-up and worker scaling. The single biggest mistake we made was running 6 weeks without pg_dump cron — a botched n8n upgrade corrupted the schema and the only saving grace was that Hetzner snapshots existed at the VM level. Lesson: schedule the pg_dump cron on day one, not day forty.