Updated February 2026. This article has been reviewed and updated to reflect the latest information.

If you have read our guides on how to self-host n8n or how to host n8n with Docker, you already know why running n8n on your own infrastructure is worth the effort. You get full data control, no per-execution pricing, and the flexibility to run workflows however you want.

The catch is that raw Docker deployments involve a fair bit of manual work: writing Docker Compose files, configuring reverse proxies, setting up SSL certificates, managing database backups, handling updates yourself. If you have a dedicated DevOps engineer, none of that is a problem. But if you just want n8n running reliably without babysitting servers, it gets in the way.

That is where Coolify comes in. You get the control of self-hosting without having to manage everything by hand. We have deployed n8n through Coolify for a number of Australian clients now, and it has become our go-to recommendation for teams that want self-hosted n8n without the operational overhead.

This guide covers the full process, from spinning up a VPS to having a production-ready n8n instance running behind SSL with automated backups.

What Is Coolify?

Coolify is an open-source, self-hostable platform that works as your own private PaaS (Platform as a Service). It is basically a self-hosted alternative to Heroku, Vercel, or Railway, except you run it on your own server and you are not paying per-app or per-deployment fees.

It provides a web-based dashboard for deploying and managing applications, databases, and services on any VPS. Under the hood, Coolify uses Docker, but it abstracts away the complexity so you are not hand-editing YAML files or debugging Nginx configurations.

Key features relevant to n8n hosting:

One-click deployment of Docker-based applications
Built-in PostgreSQL provisioning (no separate database setup)
Automatic SSL certificate generation via Let’s Encrypt
Persistent volume management through the UI
Automated backups with configurable schedules
Built-in monitoring, logs, and resource usage dashboards
Automatic updates with rollback capability
Support for multiple applications on a single server

The project is actively maintained with a good community around it, and the self-hosted version is completely free.

Coolify vs Other Deployment Options

Before getting into the setup, it is worth understanding where Coolify sits relative to other ways of hosting n8n.

Approach	Complexity	Cost Control	Maintenance	Best For
Raw Docker / Docker Compose	High	Full	Manual	Teams with DevOps experience
Coolify	Low-Medium	Full	Semi-automated	Teams wanting control without DevOps overhead
Fly.io / Railway	Low	Limited	Managed	Quick prototypes or small workloads
n8n Cloud	None	Limited	Fully managed	Teams with no infrastructure preference

Coolify vs raw Docker: You get the same level of control but with a GUI for common operations. SSL, backups, monitoring, and updates are managed through the dashboard instead of through scripts and cron jobs. The trade-off is a small amount of overhead from Coolify itself running on your server.

Coolify vs Fly.io or Railway: These managed platforms are simpler to get started with, but you pay per-resource and pricing can become unpredictable at scale. Coolify on a fixed-cost VPS gives you a predictable monthly bill regardless of how many workflows you run.

Coolify vs n8n Cloud: n8n Cloud removes all infrastructure concerns, but you give up data sovereignty, unlimited executions, and the ability to install community nodes freely. For Australian businesses in regulated industries, the data residency question alone often rules out n8n Cloud.

For most of our n8n consulting clients, Coolify lands in the sweet spot. You own your infrastructure, your data stays where you want it, and you do not need to hire a DevOps engineer to keep things running.

Prerequisites

Before starting, you will need:

A VPS with at least 2 vCPUs and 4 GB RAM. This gives Coolify room to operate alongside n8n and PostgreSQL. You can get away with 2 GB RAM for light workloads, but you will hit memory pressure once you run more than a handful of concurrent workflows.

A domain name (or subdomain) pointed at your VPS IP address. You will need two DNS records: one for Coolify’s dashboard and one for your n8n instance. For example, coolify.yourdomain.com.au and n8n.yourdomain.com.au.

SSH access to your VPS with a user that has sudo privileges.

A fresh server. Coolify installs best on a clean Ubuntu 22.04 or 24.04 instance. Running it alongside other services on an existing server can cause port conflicts.

Step 1: Set Up Coolify on Your VPS

Coolify’s installation is a single command. SSH into your VPS and run:

curl -fsSL https://cdn.coollabs.io/coolify/install.sh | bash

This script installs Docker (if not already present), pulls the Coolify containers, and starts the platform. The process typically takes two to three minutes.

Once complete, open your browser and navigate to http://YOUR_SERVER_IP:8000. You will see Coolify’s initial setup screen, where you create your admin account and configure basic settings.

Important: During initial setup, Coolify will ask you to configure your server. Select “Localhost” as the server since you are running everything on the same machine. Coolify will validate the Docker connection and confirm everything is working.

After setup, point your Coolify dashboard domain (e.g., coolify.yourdomain.com.au) to the server and configure it in Coolify’s settings under Settings > General > Instance’s Domain. Coolify will automatically provision an SSL certificate for its own dashboard.

Step 2: Deploy PostgreSQL via Coolify

Before deploying n8n, set up the database. n8n defaults to SQLite, but we always configure PostgreSQL for production. We have covered the reasons extensively in our n8n self-hosting guide, but the short version is that SQLite degrades under concurrent load and makes your instance fragile once execution history grows.

In the Coolify dashboard:

Click Projects in the sidebar and create a new project (e.g., “n8n Production”).
Within the project, click + New and select Database.
Choose PostgreSQL from the list of available databases.
Configure the database settings:

Database name: n8n
Username: n8n
Password: Generate a strong password and save it somewhere secure. You will need it for the n8n environment variables.

Click Deploy.

Coolify handles container creation, networking, and persistent volume attachment automatically. The database will be accessible to other services in the same project via Coolify’s internal Docker network.

Note the internal connection URL that Coolify displays after deployment. It will look something like postgresql://n8n:yourpassword@postgresql-xxxxx:5432/n8n. You will use this when configuring n8n.

Step 3: Deploy n8n Through Coolify

Now for the actual n8n deployment. In the same Coolify project:

Click + New and select Docker Compose.
You will be presented with an editor for your docker-compose.yml. Paste the following configuration:

services:
  n8n:
    image: n8nio/n8n:latest
    restart: always
    ports:
      - "5678:5678"
    environment:
      - N8N_HOST=${N8N_HOST}
      - N8N_PORT=5678
      - N8N_PROTOCOL=https
      - WEBHOOK_URL=https://${N8N_HOST}/
      - DB_TYPE=postgresdb
      - DB_POSTGRESDB_HOST=${DB_HOST}
      - DB_POSTGRESDB_PORT=5432
      - DB_POSTGRESDB_DATABASE=${DB_NAME}
      - DB_POSTGRESDB_USER=${DB_USER}
      - DB_POSTGRESDB_PASSWORD=${DB_PASSWORD}
      - N8N_ENCRYPTION_KEY=${ENCRYPTION_KEY}
      - EXECUTIONS_DATA_PRUNE=true
      - EXECUTIONS_DATA_MAX_AGE=168
      - GENERIC_TIMEZONE=Australia/Brisbane
    volumes:
      - n8n_data:/home/node/.n8n
volumes:
  n8n_data:

Click Save and proceed to configure the environment variables and domain.

Step 4: Configure Environment Variables

In Coolify’s service settings, navigate to the Environment Variables section. Add the following variables:

Variable	Value	Notes
`N8N_HOST`	`n8n.yourdomain.com.au`	Your n8n subdomain
`DB_HOST`	Internal hostname from Step 2	e.g., `postgresql-xxxxx`
`DB_NAME`	`n8n`	Must match your PostgreSQL config
`DB_USER`	`n8n`	Must match your PostgreSQL config
`DB_PASSWORD`	Your database password	The one generated in Step 2
`ENCRYPTION_KEY`	A random 32+ character string	Critical. This encrypts credentials stored in n8n. Lose this key and you lose access to all saved credentials. Back it up.

A note on the encryption key: Generate this properly. Run openssl rand -hex 32 on your server to create a cryptographically secure key. Do not use a passphrase or something guessable. And store it outside of Coolify as well. If your server dies and you need to restore from a database backup, you will need this key to decrypt your n8n credentials.

Timezone configuration: We set GENERIC_TIMEZONE to Australia/Brisbane in the example above. Change this to match your location. This affects how scheduled workflows (cron triggers) interpret times. An AEST cron trigger that fires at 9am will fire at the wrong time if your timezone is set to UTC.

Step 5: Domain and SSL Configuration

This part is simple in Coolify:

In the n8n service settings, go to the Domains section (or Network in some Coolify versions).
Enter your domain: https://n8n.yourdomain.com.au.
Ensure your DNS A record points to your VPS IP address.
Coolify will automatically request and install a Let’s Encrypt SSL certificate.

That is it. No Nginx configuration files, no Certbot cron jobs, no manual certificate renewals. Coolify handles the reverse proxy, SSL termination, and automatic certificate renewal.

After the domain is configured, deploy the service. Once it is running, navigate to https://n8n.yourdomain.com.au and you should see the n8n setup screen asking you to create your owner account.

Step 6: Persistent Storage

The Docker Compose configuration above already includes a named volume (n8n_data) mapped to /home/node/.n8n. This is where n8n stores:

Uploaded files and binary data from workflow executions
Community node installations
Local configuration files

Coolify manages Docker volumes and ensures they persist across container restarts and redeployments. However, volumes are tied to the host machine. If your server fails, the volume data is lost unless you have backups in place.

For production deployments, we recommend verifying the volume is correctly mounted by checking the Persistent Storage section in Coolify’s service settings. You should see the volume listed with its mount path.

Step 7: Backups

Backups are where a lot of self-hosted setups fall apart, and where Coolify actually does a good job.

Database backups: In Coolify, navigate to your PostgreSQL service and go to the Backups tab. You can configure automated backups with:

Schedule: We recommend at least daily for production. Hourly if your workflows process critical data.
Retention: Keep at least 7 days of backups. Storage is cheap; lost data is not.
Destination: Coolify supports backup destinations including S3-compatible storage (AWS S3, Backblaze B2, MinIO), which means your backups can live off-server automatically.

Configure an S3-compatible destination under Destinations in Coolify’s settings, then link it to your PostgreSQL backup schedule.

What is not backed up automatically: The n8n data volume (community nodes, uploaded files) and your encryption key. For the volume, set up a cron job on the host that periodically copies the Docker volume contents to your backup destination. For the encryption key, store it in a password manager or secrets vault.

Step 8: Updates and Rollbacks

Updates are one of the main reasons to use Coolify over raw Docker.

To update n8n, navigate to the service in Coolify and either:

Change the image tag to a specific version (e.g., n8nio/n8n:1.75.0)
Or leave it as latest and click Redeploy

Coolify pulls the new image, creates a new container, and switches traffic to it. If something goes wrong, you can roll back to the previous version through the deployment history.

Our recommendation: Do not use the latest tag in production. Pin to a specific version and update deliberately after checking the n8n release notes. We have seen breaking changes in minor version bumps that caused workflow failures. Pinning versions and testing updates on a staging instance first prevents unpleasant surprises.

Monitoring and Logs

Coolify’s dashboard provides:

Container logs: Real-time log streaming for both n8n and PostgreSQL. Very useful when debugging webhook issues or workflow errors.
Resource usage: CPU and memory graphs for each service. Handy for spotting memory leaks or knowing when you need to scale up.
Deployment history: A log of every deployment, including when images were pulled and containers restarted.

If you want more detailed monitoring, you can deploy Uptime Kuma (also available as a one-click service in Coolify) to track your n8n instance’s uptime and get alerts if it goes down.

Cost Breakdown for Australian Hosting

Here is what you can expect to pay for a production n8n setup on Coolify, using VPS providers with data centres close to Australia:

Provider	Location	Spec	Monthly Cost (AUD)
Vultr	Sydney	2 vCPU, 4 GB RAM, 80 GB SSD	~$36/month
Vultr	Sydney	4 vCPU, 8 GB RAM, 160 GB SSD	~$72/month
DigitalOcean	Singapore	2 vCPU, 4 GB RAM, 80 GB SSD	~$38/month
DigitalOcean	Sydney	2 vCPU, 4 GB RAM, 80 GB SSD	~$42/month
Hetzner	Singapore (planned)	4 vCPU, 8 GB RAM, 160 GB SSD	~$20/month

Add for backups:

Backblaze B2 storage: ~$0.005 USD/GB/month (negligible for database backups)
VPS-level snapshots: Typically 20% of VPS cost

Total realistic cost: $40-80 AUD/month for a production-ready setup that can handle hundreds of active workflows with no per-execution fees.

Compare this to n8n Cloud’s Pro plan at approximately $70 USD/month (roughly $110 AUD) with execution limits, or Zapier where a comparable workload could run into hundreds of dollars monthly. Self-hosting with Coolify starts to make a lot more financial sense once you are running more than a handful of workflows.

Scaling n8n with Coolify

As your workflow count and execution volume grow, you have a few scaling options:

Vertical scaling: Upgrade your VPS to a larger instance. Coolify does not care about the underlying hardware, so this just works. Stop the server, resize, restart.

Worker mode: n8n supports running in queue mode with separate main and worker instances. You can deploy multiple n8n worker containers through Coolify, all connected to the same PostgreSQL database and a Redis instance (also deployable through Coolify).

Separating services: Move PostgreSQL to its own dedicated server for demanding workloads. Coolify supports managing remote servers, so you can keep everything in one dashboard.

Multiple Coolify instances: For teams running n8n for multiple clients or departments, you can run separate Coolify instances on separate servers, each with their own n8n deployment.

For most Australian small and medium businesses, a single 4 GB RAM VPS handles everything comfortably. We typically advise scaling when you hit 100+ active workflows or when execution data throughput consistently pushes CPU above 70%.

Troubleshooting Common Issues

n8n cannot connect to PostgreSQL: Check that both services are in the same Coolify project and Docker network. Verify the internal hostname matches what Coolify assigned to the PostgreSQL container. The most common mistake is using localhost instead of the Docker service name.

SSL certificate not provisioning: Ensure your DNS A record is correctly pointed at your server IP and that port 80 is open (Let’s Encrypt needs it for the HTTP-01 challenge). Check Coolify’s proxy logs for errors.

Webhooks not receiving data: Verify WEBHOOK_URL is set to your full public URL including https://. If you are behind Cloudflare, ensure the proxy (orange cloud) is active and that WebSocket support is enabled.

High memory usage: n8n can consume significant memory during large data processing workflows. If you are running into OOM kills, increase your VPS RAM or configure n8n’s EXECUTIONS_DATA_PRUNE settings more aggressively to reduce the execution history retention period.

Container keeps restarting: Check the container logs through Coolify’s dashboard. The most common cause is an invalid encryption key or incorrect database credentials. If you changed the encryption key after initial setup, n8n will fail to start because it cannot decrypt existing credentials.

Coolify dashboard inaccessible: If Coolify itself becomes unreachable, SSH into the server and check Docker: docker ps to verify containers are running, and docker logs coolify to check for errors. Coolify runs as Docker containers itself, so standard Docker troubleshooting applies.

Need Help Setting This Up?

If you would rather have someone handle the deployment and ongoing maintenance for you, that is what we do. As n8n consultants based in Australia, we have deployed n8n across a range of environments and can have your instance running in production within a day.

Book a free n8n consultation and we will walk through the right hosting setup for your use case.

Frequently Asked Questions

Is Coolify free to use for hosting n8n?

Yes. Coolify is open-source and the self-hosted version is completely free. You only pay for the underlying VPS. Coolify does offer a paid cloud-hosted version of their platform, but for hosting n8n you want the self-hosted version on your own server, which costs nothing beyond your VPS bill.

How does Coolify compare to Portainer for managing n8n?

Portainer is a Docker management UI. Coolify is a full deployment platform. Portainer gives you visibility into running containers, but you still need to handle SSL, domains, backups, and deployments yourself. Coolify automates all of that. For hosting n8n specifically, Coolify is the better choice because it covers the full lifecycle (deployment, SSL, backups, updates, monitoring). Portainer is better suited to teams that already have the surrounding infrastructure in place and just need a container management interface.

Can I run other applications alongside n8n on the same Coolify server?

Yes, and this is one of the nice things about Coolify. You can deploy multiple services on the same server, each with their own domain and SSL certificate. Common additions alongside n8n include Uptime Kuma for monitoring, NocoDB or Baserow as a database frontend, and MinIO for S3-compatible file storage. Just keep an eye on resource usage. A 4 GB RAM VPS can comfortably run n8n plus two or three lightweight services. Add more RAM if you need to run heavier applications.

What happens if my server goes down? Will I lose my n8n workflows and data?

Your workflows and execution history are stored in the PostgreSQL database. If you have configured Coolify’s automated backups (as described in Step 7), your database is backed up regularly to off-server storage. To recover, spin up a new VPS, install Coolify, restore the PostgreSQL backup, and redeploy n8n with the same encryption key. Your workflows, credentials, and execution history will all be intact. The important thing is to have your encryption key stored safely outside the server. Without it, your credential data is unrecoverable even with a database backup.

Do I need to know Docker to use Coolify for n8n hosting?

A basic understanding of Docker concepts helps, but Coolify abstracts most of the complexity. You do not need to write Dockerfiles or manage containers from the command line. The Docker Compose configuration in this guide is the most “Docker-like” thing you will interact with, and you can copy it directly. That said, if something goes wrong at the infrastructure level, some familiarity with docker ps, docker logs, and docker exec is useful for debugging. If you would prefer to skip the technical work entirely, get in touch with our team and we will handle the entire setup.

This guide is maintained by the n8n consulting team at Osher Digital. We update it as Coolify and n8n release new versions. Last updated February 2026.

How to Host n8n with Coolify: The Easiest Self-Hosting Setup for Australian Businesses