n8n Self-Hosted vs Cloud — Cost, Performance, and Control Trade-offs
I’ve been testing n8n in two setups recently: self-hosted and n8n Cloud — specifically from an AI agency perspective. Here’s the honest breakdown 👇 1. Cost: predictable vs elastic n8n Cloud - Fixed monthly pricing - No infra setup, no DevOps overhead - You pay for convenience and reliability Good if: - You want predictable costs - You’re running client workflows with clear volume limits - You don’t want to think about servers at all Self-Hosted n8n - Infra cost (VPS, DB, storage, backups) - Scales cheaper at high volume - But costs shift from “subscription” → “engineering time” Good if: - You’re running heavy workflows (AI agents, scraping, batch jobs) - You have technical capacity - You want long-term cost efficiency at scale 👉 At low–medium usage, Cloud is cheaper. 👉 At high throughput, self-hosted wins — if you know what you’re doing. 2. Performance: stability vs tunability Cloud - Stable, managed environment - Limited control over execution environment - Performance is “good enough” for most use cases Self-Hosted - You control: - You can optimize for: In practice: - Cloud = fewer surprises - Self-hosted = higher ceiling, more responsibility 3. Control & security: this is the real differentiator This is where the gap becomes very clear. n8n Cloud - Limited control over data locality - Not ideal for: Self-Hosted - Full control over: - Much easier to: For agencies, this matters a lot. Self-hosting turns n8n from “automation tool” into infrastructure you actually own. 4. Maintenance: invisible cost most people ignore Self-hosting isn’t free just because the software is. You’re responsible for: - uptime - backups - updates - monitoring - security patches If you ignore this, you’ll pay later — usually at the worst time. Cloud removes this entire surface area. Final take (practical recommendation) If I had to simplify it: - Use n8n Cloud when: - Use Self-Hosted n8n when: Cloud is great for execution.