How to Self-Host n8n on a VPS with Docker Compose (2026)

This is the setup we actually run: n8n behind a reverse proxy with automatic HTTPS, backed by Postgres, on a plain Ubuntu VPS. Works the same on Hetzner, Contabo, DigitalOcean, or Vultr — pick one with the calculator first (4 vCPU / 8 GB is a comfortable production size).

1. Prepare the server

Spin up an Ubuntu 24.04 VPS, point an A record (e.g. n8n.yourdomain.com) at its IP, then install Docker:

curl -fsSL https://get.docker.com | sh

2. docker-compose.yml

services:
  postgres:
    image: postgres:16
    restart: always
    environment:
      POSTGRES_USER: n8n
      POSTGRES_PASSWORD: change_me
      POSTGRES_DB: n8n
    volumes:
      - pg:/var/lib/postgresql/data

  n8n:
    image: docker.n8n.io/n8nio/n8n:latest
    restart: always
    environment:
      DB_TYPE: postgresdb
      DB_POSTGRESDB_HOST: postgres
      DB_POSTGRESDB_USER: n8n
      DB_POSTGRESDB_PASSWORD: change_me
      N8N_HOST: n8n.yourdomain.com
      N8N_PROTOCOL: https
      WEBHOOK_URL: https://n8n.yourdomain.com/
      N8N_ENCRYPTION_KEY: generate_a_long_random_string
    depends_on: [postgres]
    volumes:
      - n8n:/home/node/.n8n

  caddy:
    image: caddy:2
    restart: always
    ports: ["80:80", "443:443"]
    volumes:
      - ./Caddyfile:/etc/caddy/Caddyfile
      - caddy:/data

volumes: { pg: {}, n8n: {}, caddy: {} }

3. Caddyfile (automatic HTTPS)

n8n.yourdomain.com {
  reverse_proxy n8n:5678
}

4. Launch

docker compose up -d

Caddy fetches a Let’s Encrypt certificate automatically. Open https://n8n.yourdomain.com, create your owner account, and you’re live.

Hardening checklist

Change every change_me and set a real N8N_ENCRYPTION_KEY.
Enable a firewall: allow only 22, 80, 443.
Back up the pg and n8n volumes (n8n stores credentials encrypted with your key).
For heavy workflows, switch on queue mode and add RAM.

Want to run a local model next to n8n? See Ollama VPS requirements, or size the combined box with the calculator.