--- title: "What is n8n? Definition, uses and limits" description: "n8n is a workflow automation tool that connects your software. What it does, how it works, cloud or self-hosted, pricing model and its limits for a business." canonical: https://sdk.enterprises/en/insights/what-is-n8n language: en --- # What is n8n? Definition, uses and limits Updated: 2026-09-29 > n8n is a workflow automation tool: it connects your software and chains actions from a trigger, without building everything from scratch. It comes as a cloud service run by n8n, billed by the number of workflow executions, and as a self-hosted version whose Community edition is free. It is very good at connecting tools; for heavy business logic, custom development takes over. ## What is n8n? n8n is a workflow automation tool. A workflow is a series of steps, called nodes, that run one after the other: fetch an email, create a CRM record, call an AI model, send a notification. You build it visually by linking blocks, and you can add JavaScript or Python code when a step needs it. Where someone copies information from one tool to another today, an n8n workflow does it every time, the same way, and keeps a record of each run. ## How does an n8n workflow work? Every workflow starts from a trigger: a form submitted, an email received, a date, an API call. Each node receives the data from the previous step, transforms it or acts in a tool, then passes the result on. If something fails, the run stops and can alert someone. ![Six-step n8n workflow diagram: trigger, CRM record created, AI summary, team notified, reply email, execution log.](https://sdk.enterprises/guides/n8n-workflow.en.svg) A typical workflow: a website request becomes a CRM record, a summary and a reply, with no retyping. ## What do businesses use n8n for? The most common uses connect tools that do not talk to each other: - Turn every website enquiry into a CRM record and a notification - Chase unanswered quotes and unpaid invoices - Read supplier invoices and prepare the bookkeeping entry - Pull figures from several tools into a weekly report - Add an AI step: summarize, sort or extract information ## n8n Cloud or self-hosted: which should you choose? n8n can be used in two ways. With n8n Cloud, n8n handles hosting, updates and scaling: nothing to install. If you self-host, you install n8n on your own servers or with a host of your choice, with Docker for example, and keep control of the environment and configuration. n8n's documentation sums it up: the cloud suits teams that do not want to manage infrastructure; self-hosting suits teams that want full control and have the technical skills to install and maintain it. ## How much does n8n cost? Without a license key, self-hosted n8n runs as the free Community edition, with almost the complete feature set. Business and Enterprise editions are enabled with a paid license key. Hosting, backups and updates remain your responsibility. Paid plans, whether hosted by n8n or self-hosted (Business, Enterprise), are priced on the number of workflow executions per month, however complex: n8n counts a complete run, not each step. Every plan includes unlimited users and workflows and every integration. Prices change: check the official page before deciding. ## What are n8n's limits? n8n excels at connecting tools and chaining actions. It fits less well when the need becomes a product: an interface for your customers, very rich business logic, high volumes in real time. At that point, custom development, which can still call n8n for some tasks, becomes easier to change. A workflow is still software: it needs documentation, error monitoring and updates when a tool changes its API. Self-hosted, the server's security is yours too. ## Key takeaways - n8n connects your software and chains actions from a trigger - Cloud: nothing to install; self-hosted: full control, free Community edition - Paid plans are billed per workflow execution, not per step - Beyond connecting tools, custom development takes over ## FAQ ### Is n8n free? The self-hosted Community edition is free. Hosting has a cost, and the paid plans, n8n Cloud and the self-hosted Business and Enterprise editions alike, are priced on the number of workflow executions. ### Do you need to code to use n8n? Not for simple workflows, which are built visually. Coding helps for complex data transformations, which n8n accepts in JavaScript or Python, and to install and maintain a self-hosted instance. ### Is n8n GDPR compliant? It depends on your setup. On n8n Cloud, n8n states that data is stored in the EU, on servers in Frankfurt. If you self-host n8n, the data the workflows process stays on your servers, except for calls you allow to outside services, an AI model for example. These choices are made before building. ### Can n8n use AI? Yes. A workflow can call a language model to summarize, sort or extract information, and keep a person approving before any important action. ## Sources - [n8n Docs: Choose how to use n8n](https://docs.n8n.io/choose-n8n/) (accessed 2026-09-29) - [n8n Docs: Host n8n](https://docs.n8n.io/hosting/) (accessed 2026-09-29) - [n8n Plans and Pricing](https://n8n.io/pricing/) (accessed 2026-09-29) ## Start from your need - [n8n automation](https://sdk.enterprises/en/n8n-automation) ## Related services - [AI agents](https://sdk.enterprises/en/services/ai-agents) - [Custom software](https://sdk.enterprises/en/services/product-engineering) ## Further reading - [n8n vs Make vs Zapier: which to choose for an SME?](https://sdk.enterprises/en/insights/n8n-vs-make-vs-zapier) - [How to automate supplier invoice processing](https://sdk.enterprises/en/insights/automating-supplier-invoices)