VPS & deployment

Self-Host n8n on a Hostinger VPS: Docker Compose, Caddy HTTPS, Backups

Self-host n8n on a Hostinger VPS for a flat monthly cost: the one-click template or Docker Compose with Caddy HTTPS, plus updates, backups and KVM sizing.

By Mr. Ahmed · 20+ years in tech

Published Oct 17, 2026 · 9 min read

The short answer

01Self-hosted n8n costs only the server, with no per-execution charges, under n8n's Sustainable Use License for internal use.
02KVM 1 (1 vCPU, 4 GB RAM) handles personal and small-team workflows on SQLite; KVM 2 (2 vCPU, 8 GB) suits Postgres or heavy file and AI work.
03Hostinger's n8n OS template is the fastest route; Docker Compose with Caddy gives you automatic Let's Encrypt HTTPS and full control.
04Back up N8N_ENCRYPTION_KEY off the server, because without it restored credentials cannot be decrypted.
05Create the owner account immediately after first launch, since whoever reaches the URL first can claim the instance.

Why run n8n yourself

n8n is a workflow automation tool in the same category as Zapier and Make: you wire apps together, add logic and let it run. The hosted product bills by workflow executions. Self-hosted, you pay a flat price for the server and run as many executions as it can cope with.

Licensing is worth thirty seconds. n8n ships under its Sustainable Use License, which permits self-hosting for your own and your company's internal use. If you intend to sell n8n to others as a service, read the license before you build a business on it.

Sizing the server

n8n on its own is light. Workflows that handle files, call AI models or loop over large lists are what eat memory. KVM 1 starts from $4.99/mo on a 48-month term before the coupon.

Plan	Fits
KVM 1 (1 vCPU, 4 GB)	Personal automations and a small team's workflows on the default SQLite database
KVM 2 (2 vCPU, 8 GB)	Many active workflows, Postgres next to n8n, heavier file or AI processing
KVM 4 and up	Queue mode with Redis and multiple workers

Route 1: Hostinger's n8n template

Hostinger offers n8n as a VPS OS template. Pick it when you create the server, or reinstall an existing one from the VPS settings, and n8n comes up in Docker without any command-line work.

For most people that is enough. Take route 2 if you want to understand every moving part, run n8n alongside other apps, or decide exactly which version you are on.

Route 2: Docker Compose with Caddy for HTTPS

Start with a plain Ubuntu 24.04 server you have already hardened, and an A record for a subdomain such as n8n.example.com pointing at it (how to add one). Caddy handles HTTPS, requesting and renewing the Let's Encrypt certificate itself.

1Install Docker, add your user to the docker group, then log out and back in.
2Create ~/n8n and generate a random 32-byte hex string for the encryption key.
3Write .env, compose.yaml and Caddyfile as shown below.
4Start the stack and watch the logs until Caddy reports a certificate and n8n reports it is ready.

Install Docker and create the project folder:

bash

curl -fsSL https://get.docker.com | sudo sh
sudo usermod -aG docker $USER   # log out and back in after this

mkdir -p ~/n8n && cd ~/n8n
openssl rand -hex 32   # copy this; it becomes N8N_ENCRYPTION_KEY

~/n8n/.env

bash

DOMAIN=n8n.example.com
N8N_ENCRYPTION_KEY=paste-the-random-string-here
GENERIC_TIMEZONE=Asia/Karachi

~/n8n/compose.yaml

yaml

services:
  n8n:
    image: docker.n8n.io/n8nio/n8n:latest
    restart: unless-stopped
    environment:
      - N8N_HOST=${DOMAIN}
      - N8N_PROTOCOL=https
      - N8N_PORT=5678
      - WEBHOOK_URL=https://${DOMAIN}/
      - N8N_ENCRYPTION_KEY=${N8N_ENCRYPTION_KEY}
      - GENERIC_TIMEZONE=${GENERIC_TIMEZONE}
      - TZ=${GENERIC_TIMEZONE}
    volumes:
      - n8n_data:/home/node/.n8n

  caddy:
    image: caddy:2
    restart: unless-stopped
    ports:
      - "80:80"
      - "443:443"
    environment:
      - DOMAIN=${DOMAIN}
    volumes:
      - ./Caddyfile:/etc/caddy/Caddyfile:ro
      - caddy_data:/data

volumes:
  n8n_data:
  caddy_data:

~/n8n/Caddyfile

text

{$DOMAIN} {
    reverse_proxy n8n:5678
}

Start it and follow the logs:

bash

docker compose up -d
docker compose logs -f

Browse to https://n8n.example.com and create the owner account right away. Until an owner exists, the first person to reach the URL can claim the instance.

Every saved credential is encrypted with N8N_ENCRYPTION_KEY. Store a copy somewhere safe that is not this server. Lose it and a restored backup cannot decrypt any of your API keys or passwords, so every credential has to be entered again by hand.

Updating

n8n ships releases frequently. Read the release notes for breaking changes, take a backup, then pull and restart. If you prefer to upgrade on your own schedule, pin a specific version tag in place of latest.

bash

cd ~/n8n
docker compose pull
docker compose up -d
docker image prune -f

Backups

Workflows, credentials and execution history (in SQLite) all live in the n8n_data volume. Archive it on a schedule and copy the archive off the server.

Archive the volume into the current folder:

bash

docker run --rm \
  -v n8n_n8n_data:/data:ro \
  -v "$PWD":/backup \
  alpine tar czf /backup/n8n-$(date +%F).tar.gz -C /data .

Or export workflows as JSON, which is convenient for Git:

bash

docker compose exec n8n n8n export:workflow --all --output=/home/node/.n8n/workflows.json

Verify it worked

Check each of these after the first start and again after every update.

The owner account exists and you can log in.
A test webhook shows your public https:// URL, not localhost.
Your encryption key is stored somewhere other than this server.

bash

cd ~/n8n
docker compose ps                 # expect: n8n and caddy both running
curl -I https://n8n.example.com   # expect: an HTTP response over HTTPS, no certificate error
docker volume ls                  # expect: n8n_n8n_data and n8n_caddy_data
ls -lh n8n-*.tar.gz               # after a backup: a non-empty archive

Questions people ask

Is self-hosted n8n free?

Yes for internal use. The Community Edition is free to self-host under n8n's Sustainable Use License, so you pay only for the server, though some enterprise features need a paid license.

Will n8n run on KVM 1?

Yes. KVM 1's 4 GB of RAM is plenty for personal and small-team automations; move to KVM 2 when you add Postgres or run heavy file or AI workflows.

Why do my webhooks show localhost URLs?

WEBHOOK_URL is missing, or n8n started before you set it. Set it to your public https URL with a trailing slash and recreate the container with docker compose up -d.

Does the WEBHOST2026 coupon apply to VPS plans?

Yes. WEBHOST2026 takes an extra 20% off eligible VPS plans, and the 24 and 48-month terms carry the lowest monthly price.

Independent site, not Hostinger. Buy through my links and Hostinger pays me a referral fee; your price is the same or lower. How that works.