Last updated on July 8th, 2026 at 03:21 pm
So, is n8n really open-source? Yes, but with a catch.
While it’s commonly described as an open-source automation tool, n8n actually operates under a “fair-code” license.
That means you can browse every line of its code on GitHub, self-host it on your own servers, and use it for free, as long as you’re using it for your own internal workflows.
What you can’t do, however, is package it up and sell it as a commercial service without buying an enterprise license.
This setup gives you the best of both worlds: total transparency and real control. You decide where your automations run: on your own machine, your company’s infrastructure, or a VPS.
Your credentials, workflow logic, and data never have to touch anyone else’s cloud unless you want them to.
So, how does fair-code automation compare to traditional proprietary automation? Take a look:
| Fair-Code Automation (n8n) | Proprietary Automation |
| Free to self-host; you pay only for your own infrastructure | Monthly fees + per-task charges |
| Your data stays on your infrastructure | Your data lives on a vendor cloud |
| Full source code access | Limited to vendor features |
| Transparent and auditable code | Closed code; you have to trust them |
| Fixed infrastructure cost regardless of usage | Costs grow with your usage |
| No lock-in; export and move anytime | Locked into their ecosystem |
Table of Contents
8 Benefits of Choosing Open-Source Automation
1) Full Data Privacy
When you self-host n8n, your data never leaves your server. Financial records, customer information, internal documents, and sensitive business assets stay on your infrastructure.
Also, API keys, OAuth tokens, and workflow data live on your own hardware, not on a shared multi-tenant SaaS platform.
If you are in finance, healthcare, or any regulated industry, data sovereignty is a requirement.
Self-hosting eliminates the risk of a security breach by someone else exposing your automation logic or credentials. You control access and decide who sees what.
When you deploy n8n on Truehost, your data stays on your KVM VPS in a Tier-3 data center with full isolation, no shared tenancy, and no third-party access.
2) Low Cost for Entry and Scaling
The open-source version of n8n is completely free to self-host. There are no licensing fees, per-user charges, or hidden costs.
You can start with a simple setup on a basic VPS and scale up as your workflow volume grows. The only cost is your infrastructure.

With Truehost, self-hosting starts from as low as R171.53 per month (triennial billing) for a KVM VPS with n8n pre-configured.
That gives you 1 vCPU, 2 GB RAM, and 50 GB NVMe storage – everything you need to run unlimited workflows and executions.
For heavier production workloads, the N8N KVM2 plan at R335.14 per month (triennial billing) provides 2 vCPU cores, 4 GB of RAM, 100 GB of NVMe storage, and 8 TB of bandwidth.
Compare this to per-task pricing models. With self-hosted n8n, you pay a flat fee for your server and run as many workflows and executions as it can handle.
You get predictable monthly costs that don’t change, regardless of how much you automate.
Read also: Is n8n free for workflow automation
3) You Are Never Locked In
Because n8n is open source and you self-host it, you are never stuck with a single provider or platform.
You can export your workflows as JSON files and import them to any other n8n instance in seconds. Your configurations, credentials, and automation logic are fully portable.
If a hosting provider does not work out, you move your deployment elsewhere.
And if you decide to switch to a different infrastructure, you take everything with you. And if the project ever gets discontinued (which is unlikely), you still have the full source code to run indefinitely.
You are not dependent on a vendor’s goodwill or continued existence.
4) Unlimited Customization & Extensibility
With n8n, you’re not limited to what a vendor decides to build. You can create custom nodes to integrate internal tools or unsupported services.
You can write JavaScript directly inside a workflow, use Python in beta, or even build new node types.
The platform ships with 400+ built-in integrations, and the community continues to add more.
But if you need something specific, you build it yourself. You don’t have to wait for feature requests or pay for custom development.
5) Complete Transparency & Security Auditing
When you use a closed-source automation tool, you are essentially taking the vendor’s word for it when they claim your data is secure.
You have no way of knowing what happens behind the scenes. Are your credentials encrypted properly?
Is your data logged somewhere you do not know about? Are there backdoors or vulnerabilities you have not been told about? You simply have to trust them.
With n8n, you do not have to trust; you can verify. The source code is open for anyone to inspect. That means your internal security team can go through the code line by line.
You can hire external auditors to review every aspect of how credentials are encrypted, how data moves through workflows, and what happens at each step of an automation.
If you have specific security requirements, you can check if n8n meets them directly, rather than relying on a vendor’s marketing claims.
And because the code is publicly available, the wider security community also keeps an eye on it.
6) Large and Active Community

n8n has a vibrant community of developers and users who contribute nodes, build integrations, and help each other troubleshoot.
If you run into an issue, there’s a good chance someone else has already solved it. The community actively shares workflows, best practices, and extensions.
This means you’re not alone in your automation journey. The collective knowledge and contributions of thousands of users make n8n more reliable and feature-rich than any single vendor could achieve.
7) No Usage-Based Cost Surprises
With SaaS automation platforms, costs scale with usage. Your bill increases as you add more workflows, steps, or executions. It becomes hard to predict monthly costs, and complex workflows become expensive fast.
With self-hosted n8n, you pay for your server. And that’s it. Run thousands of executions a day with dozens of steps each; your cost remains the same. You’ll not get surprise invoices at the end of the month.
8) Future-Proof & Sustainable
With open-source software, you are never at the mercy of a single company. Even if the n8n team changes direction tomorrow, your instance keeps running.
You have the full source code; you can fork it, maintain your own version, or bring in developers to extend it however you need.
Proprietary tools do not give you that option. If the vendor hikes prices, changes terms, or shuts down the product, you are stuck.
With n8n, you own your automation infrastructure outright. No one can take that away from you.
Is n8n Open Source FAQs
What are the benefits of running n8n locally?
Running n8n locally gives you complete data privacy, offline operation, zero latency for local integrations, and predictable costs. Your workflows run without relying on any external cloud service.
Is there an open-source alternative to n8n?
Yes. Tools like Node-RED, Huginn, Apache Airflow, and Temporal are truly open-source. n8n itself is fair-code, meaning it’s open source: you can self-host and modify it for free, but you can’t resell it commercially without an enterprise license. For most internal use cases, though, n8n offers the best balance of ease and flexibility.
Is n8n free if run locally?
Yes. The open-source version of n8n is completely free to self-host for internal business use. There are no licensing fees, execution limits, or per-task charges when you run it on your own infrastructure.
Can I run n8n locally without Docker?
Yes, you can install n8n directly via npm or use other deployment methods. However, Docker is the most commonly recommended approach for production deployments because it simplifies configuration and dependency management.
Can you use n8n offline?
Yes, n8n runs entirely on your own infrastructure and doesn’t require internet access to execute workflows. However, if your workflows interact with external APIs (like Google Sheets or OpenAI), those services obviously require network connectivity.
Can n8n use a browser?
Yes, n8n provides a web-based visual editor that runs in any modern browser. You access it through your server’s IP address or domain, typically on port 5678.
Ready to Own Your Automation? Deploy n8n on Truehost
If you’re ready to take control of your automation infrastructure, we at Truehost make it simple.
Our KVM VPS plans come with n8n pre-configured; Node, PostgreSQL, queue mode, and free SSL are all set up for you. No Docker commands required.
We offer you a flat monthly fee from R171.53/mo (when billed triennially) with unlimited workflows and executions.
Our entry-level N8N KVM1 plan starts at R265/mo and includes 1 vCPU core, 2 GB RAM, 50 GB NVMe storage, and 4 TB bandwidth.
For heavier workloads, the N8N KVM2 plan gives you 2 vCPU cores, 4 GB RAM, 100 GB NVMe storage, and 8 TB bandwidth from R341/mo (or R335.14/mo triennially).
Your n8n instance runs on dedicated NVMe storage with full root access.
You get unlimited concurrent executions, full access to community nodes, and 100+ pre-made workflows to jumpstart your automation journey. With one-click n8n installation, you can deploy in under 60 seconds and start building.
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