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n8n is not open source. Let’s get that out of the way, because it’s the most misunderstood fact about the most popular self-hosted automation tool in the world.
The source code is public. You can download it, modify it, run it on your own server. That feels like open source. But under the Open Source Initiative’s definition, n8n doesn’t qualify — the company’s own documentation says plainly: “we do not call ourselves open source.”
What n8n actually is: fair-code, distributed under the Sustainable Use License (SUL) — a license n8n created in 2022, with Enterprise-only features under a separate n8n Enterprise License. The distinction sounds like legal trivia until you’re an agency about to host n8n for paying clients. Then it’s the difference between a fine business model and an automatically terminated license.
This article explains the SUL in plain English from the published license text and n8n’s own legal coverage — not from legal experience — works through the commercial scenarios that matter for solo founders and agencies, and compares fair-code against true-OSS alternatives honestly. It is not legal advice: the license text and n8n’s FAQ are the authority, and the edge-case contact is [email protected].
The Sustainable Use License in plain English
The SUL gives you broad rights — use, modify, create derivative works, redistribute — with three limitations, summarized from the license text:
- You may use or modify the software only for your own internal business purposes, or for non-commercial or personal use. The load-bearing sentence of the whole license.
- You may distribute the software, or provide it to others, only if you do so free of charge and for non-commercial purposes.
- You may not remove or obscure the licensing, copyright, or other notices. Trademark use is subject to applicable law.
And n8n’s operating rule: “all use is allowed unless you are selling a product, service, or module in which the value derives entirely or substantially from n8n functionality.”
Three phrases carry all the weight: “internal business purposes,” “entirely or substantially,” “non-commercial.”
The restriction that matters
You cannot: white-label n8n and sell access; host n8n and charge for access (even if you don’t charge for n8n itself); fork n8n into a competing automation product or iPaaS (prohibited even unpaid, even modified); or use Enterprise-only features (.ee. files) without an Enterprise license.
Violation terminates your license immediately and automatically — no warning-and-cure clause.
What you CAN do commercially
This is where most people misread the license — they hear “restrictions” and assume commercial use is off the table. It’s not. n8n’s docs list these as explicitly allowed:
- Internal automation at any scale. CRM syncs, lead routing, reporting — your business making money from the outcomes of internal automations is unrestricted, regardless of scale or revenue.
- Consulting services. Building workflows, custom nodes, code executed by n8n for clients — charge whatever you want. The fee is for your expertise, not for n8n access.
- Setup and maintenance on a client’s own server. Charge for installation and configuration — as long as you’re not also hosting it for them, which would compete with n8n Cloud.
- Backend powering your app feature — provided end users don’t supply their own credentials to access their data through it. n8n’s example: collecting users’ HubSpot credentials to sync into your app is NOT allowed; embedding a chatbot using your company’s credentials IS allowed.
The agency question, answered precisely
n8n’s license FAQ draws the consultant line in three strokes:
- Allowed: one n8n instance operated entirely by the consultant; clients pay for outcomes and receive outputs only — no client access to the interface or workflow logic.
- Allowed: installing and managing n8n on the client’s own server, billing for implementation — not hosting.
- Not allowed: any structure where clients pay for access to n8n, however indirect.
One-sentence test: does the client touch n8n, or only the results? Results only — you’re inside the license. The client logs in — you’ve crossed the line.
The decision table: your scenario, your answer
| Scenario | Allowed under SUL? | Why |
|---|---|---|
| Automate your own lead-gen pipeline, close clients from it | Yes | Internal business purposes, any scale |
| Freelancer builds workflows on client’s server, bills hours | Yes | Consulting services; setup/support explicitly allowed |
| Agency runs n8n on its own VPS, delivers weekly enriched lead lists to clients | Yes | Clients pay for outcomes, get outputs only, never touch n8n |
| Agency gives each client a login to a shared n8n instance | No | Hosting n8n and charging for access |
| White-labeled AI automation portal powered by n8n UI | No | White-labeling + value derives substantially from n8n |
| Fork n8n to launch a competing automation SaaS | No | Competing product prohibited, paid or free |
| Nonprofit / school runs n8n free for staff | Yes | Non-commercial use |
| Enable .ee. features on self-hosted without Enterprise license | No | Enterprise License required regardless of hosting |
Fair-code vs. true OSS: the honest trade-offs
There are real open-source alternatives — and we should say plainly when they’re the better choice.
- Activepieces — MIT license, true open source. Host it as a paid service, white-label it, embed it. Trade-off: smaller integration library and community than n8n.
- Sim (simstudioai) — Apache 2.0, OSI-approved. Trade-off: newer project, thinner ecosystem.
- Apache Airflow — Apache 2.0, battle-tested for data pipelines. Trade-off: a data-engineering tool, not a general automation canvas; steeper curve for typical n8n use cases.
So why does n8n get away with fair-code? Numbers. 1,500+ integrations, 9,000+ workflow templates, a community that answers most questions within hours, roughly a new minor version most weeks (currently 2.x — see our n8n 2.0 migration guide). For most solo founders, the license never constrains anything they’d actually do.
The license only bites when your business model is n8n-as-a-service. If that’s your plan, pick MIT/Apache-2.0 tooling from the start rather than hoping the SUL won’t be enforced — termination is automatic, not a risk to build on.
The n8n Cloud angle (and the affiliate question)
Where does n8n (n8n Cloud) fit? The FAQ nudges agencies toward it: hosting-for-clients is the prohibited shape, so Cloud is the sanctioned zero-anxiety path. The affiliate program pays 30% of Cloud referrals for the first year (per n8n.io/affiliates, re-checked October 2026); Cloud Starter is 20/month billed annually. The honest tension: the SUL’s hosting restriction is also what protects n8n Cloud from self-hosted competitors — license and business model are one design.
Self-hosting reality: our n8n self-hosting TCO puts a VPS at roughly $6–12/month plus setup and maintenance. Self-hosting stays cheaper — the license just draws a hard line around commercial use of that instance.
The solo-founder bottom line
The SUL almost certainly never touches a solo founder. Run internal automations at whatever scale makes you money. Build client workflows as consulting deliverables. Keep clients on the receiving end of outputs, not logins.
The people who need a lawyer are the ones whose product is hosted n8n. Everyone else: read the three limitations, apply the one-sentence test, and get back to building.
Related reading on this site:
- n8n vs Make vs Zapier: the real cost math
- n8n self-hosting: real TCO
- n8n 2.0 migration guide
- n8n beginners setup guide
- Best n8n hosting compared
FAQ
Is n8n open source?
No. n8n is fair-code under its own Sustainable Use License — source-available with commercial restrictions. Its own docs say “we do not call ourselves open source.”
Can I use n8n for my business for free?
Yes, without limit — self-host for your own internal business purposes and the license imposes no restrictions on scale, workflow count, or revenue from the outcomes.
Can I sell n8n workflows to clients?
Yes, as consulting deliverables. What you can’t sell is access to n8n itself — hosted access, logins, or a white-labeled version.
Can I host n8n for my clients and charge them?
No — the clearest prohibition in the FAQ. You can, however, install and manage n8n on the client’s own server and charge for that service.
What happens if I violate the license?
Your license terminates immediately and automatically. No cure period stated. For gray areas, the documented contact is [email protected].
Are there truly open-source alternatives to n8n?
Yes — Activepieces (MIT), Sim (Apache 2.0), and Apache Airflow (Apache 2.0). The trade-off is generally a smaller integration ecosystem and community than n8n.
Methodology
What we did: Explained the SUL from the published license text (LICENSE.md in the n8n-io/n8n repo), n8n’s official license FAQ, and n8n’s public affiliate terms — all re-checked via web search in October 2026. The decision table applies the allowed/prohibited examples n8n itself publishes.
What we did NOT do: We are not lawyers and this is not legal advice. We did not consult a lawyer, contact n8n’s licensing team, or run any commercial deployment to “test” the license. Edge cases are covered only as far as n8n’s published examples go — for anything else, email [email protected].
Conflict disclosure: n8n is an affiliate partner (30% of Cloud referrals for 12 months, per n8n.io/affiliates, checked October 2026; links may not be used in paid ads). The analysis is unchanged: self-hosting for internal use is the honest recommendation for most readers.
AWL verdict
Ten minutes of reading saves you from a business-model mistake. For 95% of solo founders the SUL changes nothing — internal automation is unlimited, consulting is allowed. For the 5% planning to resell n8n access, it’s a wall, not a speed bump: violation auto-terminates. Know which group you’re in before you build.
Sources
- n8n license FAQ (n8n-docs GitHub mirror): https://github.com/n8n-io/n8n-docs/blob/HEAD/docs/n8n-community-license/license-faq.md (verified October 2026)
- n8n Sustainable Use License explainer (n8n-docs mirror): https://github.com/azsak00/n8n-docs/blob/HEAD/docs/sustainable-use-license.md (verified October 2026)
- n8n main repository — license statement (fair-code, SUL + Enterprise License): https://github.com/thejesh23/n8n (verified October 2026)
- Activepieces vs n8n license + TCO comparison (2sync): https://2sync.com/blog/activepieces-vs-n8n (verified October 2026)
- n8n affiliate program: http://n8n.io/affiliates/ (verified October 2026 — 30% of Cloud referrals for the first year)
- fair-code definition: https://faircode.io/ (verified October 2026)
- Sim vs n8n licensing comparison (Sim docs): https://github.com/sudokrishna/sim/blob/HEAD/apps/sim/content/library/n8n-alternatives/index.mdx (verified October 2026)
