In the exploding world of hyper-automation, n8n has emerged as the developer’s darling. It offers the visual simplicity of low-code tools like Zapier or Make. However, it pairs this ease with the raw power of self-hosting and node-based adaptability.
For businesses looking to cut the cord on escalating SaaS subscription fees, n8n seems like the holy grail. It is powerful, extendable, and ostensibly free. But as with any powerful tool, the legal fine print can be a minefield.
You are likely here because you have asked the question: Is n8n actually free for commercial use?
The short answer is yes, but with a critical asterisk. Ignoring this detail could cost your business thousands.
As an AI-first automation partner, Thinkpeak.ai navigates these licensing nuances daily. We transform static business operations into self-driving ecosystems, often leveraging tools like n8n.
In this comprehensive guide, we will dismantle the confusion around n8n’s Sustainable Use License. We will explore exactly when you have to pay and how to leverage this tool to build your proprietary software stack without the massive overhead.
The Short Answer: Yes, But…
Let’s cut through the noise immediately. If you are a business—whether a solopreneur, a mid-sized agency, or a Fortune 500 company—you can use the self-hosted version of n8n for free.
This applies strictly to your internal business operations.
- Can you automate your own marketing emails for free? Yes.
- Can you sync your CRM to Google Sheets for free? Yes.
- Can you build an internal dashboard for your HR team? Yes.
- Can you take n8n, wrap it in your own branding, and sell it as “SuperAutoTool Pro” for $49/month? Absolutely not.
The distinction lies in internal use versus commercial distribution. To understand why, we need to look at the unique licensing model n8n employs.
Deep Dive: The “Sustainable Use License” Explained
Traditional open-source software (OSS) is often licensed under MIT or Apache. These licenses essentially allow you to do whatever you want, including reselling the code.
n8n operates differently. It uses a Fair-Code model, specifically the Sustainable Use License. In 2026, this model has become a standard for infrastructure companies. It aims to keep software open while preventing tech giants from eating into their product revenue.
The Core Tenet: “Internal Business Purposes”
The license grants you the right to use, modify, and distribute the software. However, this is provided it is used for internal business purposes.
This generally means you are using the software to run your company. It doesn’t matter if you are making millions of dollars in profit because of the automation. As long as the automation supports your business logic rather than being the product you sell, you remain in the free tier of the self-hosted edition.
The “Competitor” Clause
The license explicitly prohibits you from using n8n to build a product that competes with n8n itself. You cannot commercially exploit the software by charging third parties fees to access the n8n software or a modified version of it.
If your business model involves asking users to pay for a login to this workflow builder, you are crossing the line. At that point, you are no longer a user. You are a distributor, and you need a commercial license.
Scenario A: The Internal Power User (Free)
This is the most common use case. It applies to 90% of our audience at Thinkpeak.ai.
Imagine you run a logistics company with thousands of orders flowing in daily. You decide to spin up a self-hosted n8n instance on a DigitalOcean droplet or an AWS server.
You might build complex workflows that:
- Ingest orders from Shopify.
- Route them to your warehouse management system.
- Use AI agents to draft personalized email updates to customers.
- Ping your Slack channel with high-value order alerts.
Verdict: 100% Free (License-wise).
You are using n8n to optimize your operations. You are not selling access to n8n; you are selling logistics services. The fact that n8n helps you make money is irrelevant to the license fee.
The Hidden Cost of “Free”
While the license is free, the infrastructure is not. Self-hosting maintenance is real work. You need to manage updates, secure your server, handle backups, and ensure uptime.
For businesses that want the power of n8n without the technical debt, we offer Bespoke Internal Tools. We architect the entire backend and hand you the keys. You own the instance, keeping your licensing free, while we handle the engineering rigor.
Scenario B: The Agency & Consultant Dilemma (The Gray Area)
This is where many clients often get confused. If you are an automation agency or a freelancer building workflows for other companies, how does the license apply?
The “Consulting” Exception
You can charge a client for your time and expertise to set up n8n for them.
- Allowed: “I will charge you $5,000 to set up a lead qualification system on your n8n instance.”
- Allowed: “I will charge you a monthly retainer to maintain and update your workflows.”
In these cases, the client is the licensee. They are hosting the instance, or you are setting it up on their infrastructure. They are using it for their internal business. You are selling professional services, not the software.
The “Managed Service” Trap
Not Allowed (Without Commercial License): “I have one big n8n instance hosted on my server. I will charge 50 clients $100/month to run their automations on my instance.”
In this scenario, you are effectively acting as a SaaS provider. You are monetizing access to the n8n runtime. This violates the Sustainable Use License and requires an Enterprise/Commercial License from n8n.
How Thinkpeak.ai Navigates This
We prioritize your ownership. When we deploy our Content & SEO Systems, we often deploy them directly into your infrastructure. This ensures you retain full data sovereignty. You remain compliant with fair-code licensing and avoid the “middleman tax” of managed SaaS markups.
Scenario C: SaaS and OEM Embedding (Paid)
Perhaps you are a product manager building a SaaS platform. Maybe it is a marketing tool for real estate agents. You want to embed an “automation builder” inside your product so users can create their own workflows.
You cannot use the free version for this. Embedding n8n as a feature of your commercial product (OEM embedding) requires a partnership with n8n. This usually involves a revenue-share model or a significant annual license fee.
For startups building MVPs, this can be a hurdle. Our Custom Low-Code App Development services can often help you build alternative logic layers. We use tools like FlutterFlow or custom Python microservices if the n8n commercial license doesn’t fit your seed-stage budget.
Cost Comparison: n8n vs. The Giants (2026 Data)
To understand the value of the free self-hosted license, you must compare it to the cumulative costs of its competitors. By 2026, usage-based pricing for platforms like Zapier and Make has continued to rise. This makes high-volume automation prohibitively expensive for scaling companies.
1. Zapier (The “Easy” Tax)
Zapier operates on a per-task pricing model. A scaling company with 200,000 tasks/month can easily spend $1,500+ per month. The linear pricing means your costs grow in lockstep with your success.
2. Make.com (The Middle Ground)
Make uses per-operation pricing. It is generally cheaper than Zapier. However, complex scenarios with many loops can burn through operation limits in hours. Heavy usage often costs between $300 and $600 per month.
3. n8n Self-Hosted (The “Free” Commercial Use)
With n8n Self-Hosted, you pay for the server, not the tasks. The license cost is $0. A robust VPS on Hetzner or DigitalOcean costs roughly $20 – $40 per month.
This gives you unlimited workflows and unlimited executions. You could run 10 million executions a month for the same $40 server cost. For high-volume commercial use, n8n is mathematically superior.
This is where Thinkpeak.ai bridges the gap. We provide the architectural expertise of a dev team without the overhead.
The “Hidden” Requirements of Commercial Self-Hosting
While the license is free, commercial readiness is not. Using n8n for a hobby project is different from relying on it to process your company’s leads or financial data.
If you choose the free self-hosted route for commercial use, you must account for several factors.
1. Security Hardening
A default n8n installation on a public server is a security risk. You must configure SSL/TLS Encryption to protect data in transit. You also need Basic Auth & SSO to prevent unauthorized access to your workflow editor.
2. Reliability & Queue Management
In a commercial environment, servers can crash. You need Docker Compose setups that auto-restart containers. For heavy loads, you need to configure Redis to handle job queues. This ensures your webhooks don’t fail if the main process is busy.
3. Data Privacy (GDPR/CCPA)
Since you are self-hosting, you are the data processor. You don’t have a third party to blame if data leaks. You must ensure your n8n instance is compliant with data retention policies.
This complexity drives many businesses to our Automation Marketplace. We provide sophisticated, pre-architected templates that are production-ready. We provide the blueprint for a stable, secure implementation that scales with your business.
How Thinkpeak.ai Leverages n8n for You
At Thinkpeak.ai, we don’t just see n8n as a tool. We see it as the engine for your proprietary software stack. Our mission is to help you build a self-driving ecosystem.
Instant Deployment: The Automation Marketplace
For businesses that need speed, we offer plug-and-play templates optimized for n8n. This includes our Cold Outreach Hyper-Personalizer. We build the n8n logic that scrapes data and drafts emails; you simply host the workflow.
Bespoke Engineering: The “Limitless” Tier
If standard templates aren’t enough, we build custom infrastructure. We can use n8n as the “glue” code to connect your legacy ERP to your modern CRM. We also build Digital Employees on n8n that can reason and execute tasks 24/7.
By partnering with us, you effectively bypass the learning curve of self-hosting. You capitalize on the cost benefits of the Sustainable Use License immediately.
Conclusion
So, is n8n free for commercial use? Yes.
For the vast majority of businesses using automation to improve their own efficiency, n8n is the most cost-effective tool on the market in 2026. It frees you from the per-task pricing tyranny of its competitors. It allows you to build a software stack that you truly own.
However, free licensing does not mean effortless implementation. The shift from a managed SaaS to a self-hosted ecosystem requires architectural maturity. Don’t let technical complexity hold you back from unlimited automation.
Ready to build your self-driving business? Whether you need a pre-built engine or a fully custom app, we are your partner in engineering efficiency.
Explore the Automation Marketplace or Book a Bespoke Engineering Consultation today.
Frequently Asked Questions (FAQ)
Can I use n8n for client work as an agency?
Yes, provided you are not selling “n8n hosting” as a product. The best practice is to set up a self-hosted instance on your client’s infrastructure which they pay for. You then charge for the service of building and maintaining the workflows.
Does n8n require coding knowledge to self-host?
To run a basic instance, you need familiarity with command-line interfaces (CLI) and server management. While the workflow builder is low-code, the infrastructure setup is pro-code. If your team lacks this expertise, Thinkpeak.ai can handle the infrastructure setup for you.
What is the difference between n8n Cloud and Self-Hosted?
n8n Cloud is a paid SaaS version hosted by n8n. It is easy to set up but comes with monthly costs and execution limits. n8n Self-Hosted is free (Community Edition), hosted on your own servers, and has no limits on executions.
Can I embed n8n in my SaaS product?
No, not with the free license. If you want to embed n8n so that your customers can use it directly within your app, you must contact n8n for a Commercial license. However, you can use n8n as a hidden backend processor for your app, provided users aren’t directly interacting with the n8n interface.
Is n8n “Open Source”?
Technically, no. It is Source Available or Fair-Code. Open Source allows for unrestricted use, including reselling. n8n’s license restricts commercial redistribution, which protects their business model while keeping the code free for end-users.
Resources
- n8n: Fair-Code Workflow Automation Platform | Surrey & London: https://www.avermaconsulting.com/what-is-n8n/
- n8n: Is it really foss?: https://isitreallyfoss.com/projects/n8n/
- n8n Terms and Conditions: A Plain English Guide: https://n8npro.in/community-learning/understanding-n8ns-terms-and-conditions-for-usage/
