Self-Host n8n on a VPS with Docker Compose

n8n is a workflow automation tool, similar in spirit to Zapier, that you can run yourself. Self-hosting n8n on a VPS gives you unlimited workflows and keeps your data and credentials on your own server. This guide uses Docker Compose with PostgreSQL and HTTPS.

Before you start

A Linux VPS with 2 GB RAM or more, Docker and the Compose plugin.
A subdomain such as n8n.example.com pointing to the server.
Nginx with Certbot (or another reverse proxy) for HTTPS. Webhooks from services like Stripe or GitHub require a public HTTPS URL.
Check n8n's licence terms (Sustainable Use License) for your use case.

Create the project

mkdir -p /opt/n8n && cd /opt/n8n

Create .env (chmod 600 .env):

POSTGRES_PASSWORD=change-me-long-random
N8N_ENCRYPTION_KEY=generate-with-openssl-rand-hex-32
N8N_HOST=n8n.example.com
GENERIC_TIMEZONE=Europe/Berlin

Generate the key with openssl rand -hex 32 and store it in your password manager: n8n encrypts all saved credentials with it, and without it a restored backup cannot decrypt them.

Write docker-compose.yml

services:
  postgres:
    image: postgres:16-alpine
    restart: unless-stopped
    environment:
      POSTGRES_DB: n8n
      POSTGRES_USER: n8n
      POSTGRES_PASSWORD: ${POSTGRES_PASSWORD}
    volumes:
      - pgdata:/var/lib/postgresql/data
    healthcheck:
      test: ["CMD-SHELL", "pg_isready -U n8n"]
      interval: 5s
      retries: 10

  n8n:
    image: docker.n8n.io/n8nio/n8n:latest
    restart: unless-stopped
    depends_on:
      postgres:
        condition: service_healthy
    ports:
      - "127.0.0.1:5678:5678"
    environment:
      DB_TYPE: postgresdb
      DB_POSTGRESDB_HOST: postgres
      DB_POSTGRESDB_DATABASE: n8n
      DB_POSTGRESDB_USER: n8n
      DB_POSTGRESDB_PASSWORD: ${POSTGRES_PASSWORD}
      N8N_ENCRYPTION_KEY: ${N8N_ENCRYPTION_KEY}
      N8N_HOST: ${N8N_HOST}
      N8N_PROTOCOL: https
      WEBHOOK_URL: https://${N8N_HOST}/
      GENERIC_TIMEZONE: ${GENERIC_TIMEZONE}
      N8N_PROXY_HOPS: 1
    volumes:
      - n8n_data:/home/node/.n8n

volumes:
  pgdata:
  n8n_data:

For production, pin a specific n8n version tag instead of latest so updates happen when you choose. Start it:

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

Add HTTPS with Nginx

n8n's editor uses WebSockets, so include the upgrade headers:

server {
    server_name n8n.example.com;
    client_max_body_size 50m;
    location / {
        proxy_pass http://127.0.0.1:5678;
        proxy_http_version 1.1;
        proxy_set_header Upgrade $http_upgrade;
        proxy_set_header Connection "upgrade";
        proxy_set_header Host $host;
        proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
        proxy_set_header X-Forwarded-Proto $scheme;
        proxy_buffering off;
    }
}

Then run certbot --nginx -d n8n.example.com. Open the URL and create the owner account straight away.

Secure your instance

Create the owner account immediately; invite other users from Settings → Users.
Enable two-factor authentication for accounts in user settings.
Restrict the editor to your IP or a VPN in Nginx if only you use it, while leaving /webhook/ paths public.
Keep Postgres unexposed (no published port), as above.

Back up and update

docker compose exec -T postgres pg_dump -U n8n -Fc n8n > /backup/n8n-$(date +%F).dump

Also keep the encryption key. You can export workflows as JSON with docker compose exec n8n n8n export:workflow --all --output=/home/node/.n8n/workflows.json.

To update: read the release notes for breaking changes, back up, change the image tag, then docker compose pull && docker compose up -d.

Troubleshooting

Webhook URLs show localhost:5678: WEBHOOK_URL is not set to the public HTTPS address.
Editor shows "Connection lost": WebSocket headers are missing in the proxy.
Credentials could not be decrypted: the encryption key changed. Restore the original N8N_ENCRYPTION_KEY.
Workflows run at the wrong time: set GENERIC_TIMEZONE and the workflow's own time zone setting.

n8n FAQ

How much does a self-hosted n8n need?

2 GB RAM handles many light workflows. Heavy data processing or many parallel executions need more, or queue mode with workers.

SQLite or PostgreSQL?

SQLite works for testing; PostgreSQL is more robust for production and required for queue mode.

Can I run n8n on cPanel hosting?

Not reliably: it is a long-running Node.js service with WebSockets. Use a VPS.

Next steps

Was this guide helpful?

Still stuck?

Ask MdmHost AI for a quick answer, or open a ticket and our team will take a look. We are here 24/7.

Ask MdmHost AI Open a ticket