n8n vs Zapier: Why Self-Hosted Wins in AI Projects?

The Problem with Zapier/Make in B2B

Cloud-based platforms have a pricing model that punishes success:

• Execution limits: Zapier Team: $600/month for 50K tasks. If you need 200K tasks: $2,000+/month
• Extreme vendor lock-in: Proprietary workflows, impossible to export
• Data on their servers: PII, credentials, secrets flow through third-party infrastructure
• No custom integrations: If your tool isn't in the marketplace, you pay for expensive custom development

n8n Self-Hosted: Same Functionality, Total Control

n8n is open-source (fair-code license) and can be deployed on your own infrastructure. This completely changes the economics:

Direct Comparison: Zapier vs n8n

Feature Comparison

Zapier Team ($600/month):

• ✅ 50K tasks included
• ✅ 1,000+ pre-built integrations
• ❌ Data on Zapier servers
• ❌ Proprietary workflows
• ❌ No access to private DBs
• ❌ Strict execution limits

n8n Self-Hosted ($80/month VPS):

• ✅ Unlimited tasks
• ✅ 400+ integrations + custom HTTP nodes
• ✅ Data 100% on your infrastructure
• ✅ Exportable workflows (JSON)
• ✅ Direct access to private PostgreSQL/MySQL
• ✅ Inline JavaScript for custom logic

Use Cases Where n8n Dominates

1. High Volume Operations

If you process +100K operations/month, n8n is 90%+ more economical. Example: Automatic lead enrichment for SaaS with 5K signups/month.

2. Sensitive Data (GDPR/HIPAA)

Healthcare, fintech, legal: data never leaves your infrastructure. Simplified compliance, easier audits.

3. Integrations with Internal Tools

Proprietary CRMs, internal DBs, private APIs: n8n connects directly via HTTP/SQL without needing public connectors.

4. Complex Multi-Step Logic

Inline JavaScript enables arbitrary logic. Loops, complex conditionals, advanced data transformations.

Setup: n8n Self-Hosted in Production

Production-ready n8n deployment takes 2-3 hours. Recommended stack:

1. VPS: 4GB RAM, 2 vCPUs ($40-80/month on Hetzner/DigitalOcean)
2. n8n: Docker container with PostgreSQL backend
3. Nginx: Reverse proxy with SSL/TLS (Let's Encrypt)
4. Backups: Daily PostgreSQL dumps to S3/BackBlaze
5. Monitoring: Uptime checks + centralized logs

Key configuration:

• Webhook URLs: https://n8n.yourdomain.com/webhook/[path]
• Credentials encrypted in PostgreSQL
• Workflows versioned in Git (JSON export)
• Rate limiting in Nginx for public endpoints

Once configured, adding new workflows is identical to Zapier: drag-and-drop, inline testing, instant deployment.

When to Use Zapier vs n8n

Use Zapier if:

• Volume <10K tasks/month (free/starter plan sufficient)
• Rapid prototyping without DevOps expertise
• Very specific integrations only available in Zapier
• No sensitive data (GDPR/HIPAA don't apply)

Use n8n self-hosted if:

• Volume >50K tasks/month (immediate ROI)
• Sensitive data requires total control
• You have or can hire basic DevOps expertise
• You want custom integrations with internal tools
• You prefer fixed vs variable costs

Migration: Zapier → n8n

I've migrated 3 companies from Zapier to n8n. Standard process:

1. Audit (1 day): Document current Zapier workflows
2. Infra setup (0.5 days): VPS + n8n + PostgreSQL + backups
3. Recreate workflows (2-3 days): Rebuild in n8n (usually simplified)
4. Parallel testing (3-5 days): Run both systems, validate outputs
5. Cutover (1 day): Turn off Zapier, monitor n8n

Total timeline: 1-2 weeks. Positive ROI in the first month for volumes >50K tasks/month.