How to self-host n8n on DigitalOcean

Pick your Droplet size first

This is where people go wrong. DigitalOcean's cheapest Droplets are smaller than they look:

Create a DigitalOcean Droplet →

Path A — the 1-click Marketplace image (easiest)

DigitalOcean's Marketplace has a real n8n image: Ubuntu with Docker, Docker Compose and Caddy (Caddy issues and renews the Let's Encrypt certificate for you). It installs to /opt/n8n-docker-caddy.

1. 1. Create a Droplet → the Marketplace tab → choose n8n (pick a 2–4 GB size).
2. 2. Add an A record for n8n.example.com pointing at the Droplet's IP (DigitalOcean's DNS is free, or use your registrar).
3. 3. SSH in, run the guided console setup, and put your domain in the Caddyfile:

n8n.example.com {
    reverse_proxy n8n:5678 {
        flush_interval -1
    }
}

4. 4. docker compose up -d from the install folder, wait for Caddy to get the certificate, then open https://n8n.example.com.

Path B — a plain Droplet + Docker (more control)

Prefer to own the stack? Create a plain Ubuntu Droplet, install Docker and Compose yourself, and run n8n with PostgreSQL behind Caddy or nginx. Set these environment variables — they're the difference between a working instance and one whose webhooks and OAuth logins are broken:

- N8N_WEBHOOK_URL=https://n8n.example.com/
- N8N_PROXY_HOPS=1
- N8N_ENCRYPTION_KEY=a-long-random-string-you-keep-safe
- DB_TYPE=postgresdb

Want managed Postgres instead of running your own container? DigitalOcean's Managed PostgreSQL starts around $15/mo with automated backups and point-in-time recovery — optional, but it removes one thing to babysit.

The n8n gotchas (same on any host)

What the DigitalOcean premium actually buys

For the same 4 vCPU / 8 GB, Contabo runs about $7–8/mo versus roughly $48/mo on DigitalOcean — a big gap, and the reason Contabo is the specs-per-dollar winner. What the extra money buys on DO is the ecosystem, not the metal: a real 1-click image, first-party step-by-step docs, one-click Managed Postgres, on-demand snapshots and automated backups, reserved IPs to re-point at a rebuilt Droplet, and free monitoring and alerts. DigitalOcean gives you fewer things to build and maintain yourself; Contabo gives you more server. For a beginner who wants n8n live in minutes with managed HTTPS and a database they never touch, DO earns its premium — see DigitalOcean vs Contabo for the full head-to-head, or our Contabo n8n guide for the cheaper route.

Frequently asked