Choose Power Automate if your team already lives in Microsoft 365, needs desktop robots that click through old Windows apps, or wants IT to govern every flow from one admin center. Choose n8n if you want to self-host, write code when needed, connect many non-Microsoft apps, and pay per workflow run instead of per user. Many small teams on Microsoft 365 can start Power Automate at no extra license cost with standard connectors, while technical teams often get more room per euro from n8n.

Prices and features below come from each vendor’s official pages, read on 13 October 2026. Both products change fast, so verify current pricing on the official site before you buy. This page is for office managers, operations leads and builders who know what a workflow is and want clear, sourced differences.

Related reading: what is n8n, n8n vs Zapier, and n8n vs Make. Key terms used in this guide: AI agent and prompt injection.

What is n8n?

n8n is a workflow automation platform with a visual canvas where you chain triggers, app steps and logic. You can run it in n8n’s cloud or, as the n8n hosting docs put it, on your own infrastructure, on premises or in a private cloud. It suits AI agents as well as classic app-to-app workflows.

Two details shape almost every n8n decision:

  • Hosting choice. You can pay for n8n Cloud or run the software yourself. The n8n editions page says the self-hosted Community edition is free and can be used indefinitely, with almost the full feature set. Missing items include SSO, Git version control, log streaming, and workflow or credential sharing.
  • License. n8n is source-available, not open source in the strict sense. The n8n community license page explains the Sustainable Use License: you may use and modify the software for your own internal business purposes or for personal and non-commercial use. If you want to offer n8n to your customers so they can connect their own accounts and build workflows, you need a separate commercial agreement.

n8n is low-code rather than no-code. The n8n pricing page lists code steps in JavaScript or Python, custom HTTP and GraphQL requests, and triggers from webhooks and queues on every plan. That flexibility is the main reason developers pick it, and also the main reason beginners sometimes stall.

What is Power Automate?

Power Automate is Microsoft’s automation service inside the Power Platform. It has two halves. Cloud flows connect services through connectors such as SharePoint, Outlook and Teams. Desktop flows are robotic process automation (RPA): a bot that mimics mouse and keyboard actions in apps that have no API.

Licensing is the part people find hardest. According to Microsoft’s Power Automate license types page, there are user licenses (assigned to people) and capacity licenses (assigned to a flow or a machine). The free license covers cloud flows with standard connectors, without sharing, plus local attended desktop flows. Premium adds premium and custom connectors, an attended bot, process mining and AI Builder credits.

Many companies already own some Power Automate rights. The Power Automate licensing FAQ lists Office 365 plans such as Business Basic, Business Standard, Business Premium and E3 that include automated, scheduled and button cloud flows with standard connectors, at 6,000 actions per day.

Side-by-Side Comparison Table

Factorn8nPower Automate
Hostingn8n Cloud or self-hosted on your own serversMicrosoft cloud; desktop flows run on Windows machines or Microsoft hosted machines
License modelSustainable Use License (fair-code) plus paid license keysCommercial Microsoft licenses, user or capacity based
Billing unitWorkflow executions per month, any number of stepsPer user per month, or per bot per month
Entry paid planStarter, 20 EUR per month billed annually, 2.5K executionsPremium, 15 USD per user per month, paid yearly
Free pathSelf-hosted Community editionFree license for work or school accounts; Office 365 seeded rights
Microsoft 365Nodes for Outlook, Teams, SharePoint, Excel, OneDriveNative connectors, admin center, Entra identity
Desktop RPANo screen-recording robot; works through APIs, webhooks and codeAttended and unattended desktop flows
AI building blocksAI Agent node, multiple LLM providers, MCPCopilot for building flows, AI Builder credits
Custom codeJavaScript or Python in the Code nodeCustom connectors for services with no prebuilt connector

The table compresses the two main splits. n8n bills by how often workflows run, while Power Automate mostly bills by who builds and runs flows. n8n gives you control of where it runs, while Power Automate gives you Microsoft’s governance and desktop robots.

Decision criteria

Use these five criteria in order. The first one that clearly favors a tool usually decides the comparison.

Hosting and data control

If data must stay on your own infrastructure, n8n is the only one of the two you can install yourself. The n8n hosting docs list Docker Compose, a one-line setup script, and guides for AWS, Azure, Google Cloud and others. For n8n Cloud, the n8n pricing page states that hosted data is stored in the EU on servers in Frankfurt, Germany. Power Automate runs in Microsoft’s cloud under your tenant, which suits teams that already trust Microsoft with their files and email.

Microsoft 365 integration

Power Automate wins on depth here because it sits inside the same identity and admin system. n8n still covers the common Microsoft apps. Its Microsoft credentials docs list nodes for Outlook, Teams, SharePoint, Excel, OneDrive, To Do and Dynamics CRM, all through OAuth2. The catch is setup: you need an Azure account, and in a company tenant an admin may have to allow users to consent to apps. For a Microsoft-only shop, that extra step is friction you do not face with Power Automate.

Desktop automation (RPA)

If you need to automate a legacy desktop app with no API, Power Automate is the clear pick. The desktop flow requirements call for Windows 10, Windows 11 or Windows Server 2016 to 2025, and ARM devices are not supported. On Windows Home you can build and run desktop flows locally, but you cannot trigger them from the cloud. n8n does not record and replay screen clicks, so it is the wrong tool for this job.

AI features

Both tools add AI, but in different places. The n8n AI docs describe workflows that connect LLM providers such as OpenAI, Anthropic and Google, with tools and memory, and several models in one workflow. The n8n pricing page lists the AI Agent node, MCP support and human approval for tool calls. In Power Automate, the Copilot overview shows Copilot helping you create cloud flows from plain language, plus several desktop flow Copilot features still marked preview. Microsoft notes that Copilot is on by default and that turning it off happens at tenant level.

Security and governance

On Power Automate, admins use Power Platform data policies to control which connectors can be used together, which reduces accidental data leaks. On self-hosted n8n, security is your job. The n8n security docs cover security audits, SSL, SSO, blocking specific nodes, disabling the public API, redacting execution data and controlling telemetry.

Whichever tool you choose, apply least privilege: give each connection only the permissions it needs. Keep a human approval step for any flow that sends email, deletes files, changes filters or makes payments. When an AI step reads outside documents or emails, watch for prompt injection, where hidden text tries to steer the model. Never route passwords, card numbers, ID numbers or health records through an AI step.

Pricing comparison: how each tool bills

The two price lists measure different things, so a direct dollar comparison can mislead.

n8n pricing as of 13 October 2026

According to the n8n pricing page, all plans include unlimited users, unlimited workflows and every integration:

  • Starter: 20 EUR per month billed annually, 2.5K workflow executions, 5 concurrent executions, hosted by n8n.
  • Pro: from 50 EUR per month billed annually, 10K executions, admin roles and workflow history.
  • Business: 667 EUR per month billed annually, 40K executions, SSO, Git version control and queue mode. As of October 2026 it is self-hosted only.
  • Enterprise: custom pricing, hosted or self-hosted, with dedicated support.

The same page says companies under 20 employees may qualify for a Start-up Plan with 50% off Business. One execution is one full run of a workflow, no matter how many steps it contains.

Power Automate pricing as of 13 October 2026

The Power Automate pricing page lists US prices, paid yearly:

  • Premium: 15 USD per user per month, with cloud flows, attended desktop flows and process mining. Task mining records staff desktop activity; tell employees and check local privacy and employment rules (for example GDPR in the EU). General information, not legal advice.
  • Process: 150 USD per bot per month, for unattended desktop flows or for licensing a single flow.
  • Hosted Process: 215 USD per bot per month, adding a Microsoft hosted virtual machine.
  • Process Mining add-on: 5,000 USD per tenant per month.

Microsoft notes that actual prices vary by country, currency and organization. Daily action limits also matter: 40,000 actions per Premium user and 250,000 per Process license, per the license types page.

Worked cost example (hypothetical)

Picture a 10-person accounting office on Microsoft 365. It wants one flow that checks a shared inbox every 5 minutes and files invoices into SharePoint.

  • Power Automate: if the flow uses only standard connectors, the existing Office 365 licenses may cover it, so the extra license cost could be zero. If it needs a premium connector, each person who runs it needs Premium, or the flow gets a Process license.
  • n8n: the n8n pricing page estimates that a 5-minute schedule creates roughly 8,600 to 8,900 executions a month. That fits under Pro’s 10K, not Starter’s 2.5K. Self-hosting the Community edition costs no license fee, but you pay for the server and the time to maintain it.

The lesson is to count runs for n8n and count people and bots for Power Automate before comparing any totals. Check current limits on the official site.

When to choose each option

Choose n8n when

  • You have someone comfortable with Docker, APIs or basic JavaScript.
  • You connect many non-Microsoft apps, such as CRMs, databases or AI models.
  • You need data to stay on your own servers, or you want to avoid per-user fees as the team grows.
  • You want to build AI agents that call tools, with human approval on risky steps.

Choose Power Automate when

  • Your company runs on Microsoft 365, Teams and SharePoint, and IT wants central control.
  • You must automate Windows desktop apps or legacy systems with no API.
  • Staff are not technical and need templates, Copilot help and Microsoft support channels.
  • Your current Office 365 plan already covers the standard connectors you need.

Which tool is better for small businesses?

For a small business without technical staff, Power Automate inside an existing Microsoft 365 plan is usually the lower-risk start. For a small business with one confident builder and many non-Microsoft apps, n8n Cloud Starter or a self-hosted Community edition often fits better. Some teams use both: Power Automate for desktop robots and approvals, n8n for API-heavy and AI workflows.

Tradeoffs and caveats

Workflow builder Turn this section into an office workflow Practice the prompts and review steps behind this business use case.

No tool wins on every factor. These are the tradeoffs to weigh honestly.

n8n strengths: run-based pricing that does not grow with headcount, self-hosting, code when you need it, and broad integrations.

n8n weaknesses: self-hosting means you own updates, backups and security. The license limits reselling n8n to your customers. Team features such as SSO and sharing need paid plans.

Power Automate strengths: deep Microsoft 365 fit, desktop RPA, central admin controls and seeded rights in many Office 365 plans.

Power Automate weaknesses: licensing is complex, premium connectors add per-user cost, and desktop flows need Windows.

Common mistakes to avoid:

  1. Comparing an n8n euro price with a Power Automate dollar price without converting units.
  2. Assuming free Office 365 rights include premium connectors. They do not.
  3. Self-hosting n8n with no plan for updates or backups.
  4. Letting an AI agent send messages or delete records with no approval step.

How to migrate from Power Automate to n8n

There is no one-click conversion. The n8n export and import docs describe workflows saved in n8n’s own JSON format, so Power Automate flows have to be rebuilt by hand. Plan a rebuild, not a conversion.

  1. Inventory. List every flow, its trigger, its connectors and who owns it.
  2. Sort. Separate standard cloud flows, premium connector flows and desktop flows. Desktop flows usually stay in Power Automate.
  3. Pilot. Rebuild one low-risk flow in n8n and set up Microsoft credentials with the narrowest scopes.
  4. Run in parallel. Keep both versions running for a week or two and compare results.
  5. Cut over. Turn off the old flow, then watch n8n’s execution logs closely.

When you share exported n8n workflows, the export docs warn that credential names and authentication headers can end up in the JSON file, so clean the file first.

Learning automation before you commit

Both tools reward people who understand prompts, data and simple logic before they build, including what a trigger, an action and a model can safely do. Coursiv focuses on the whole product, course, app and platform experience: guided, bite-sized AI lessons you can take at your own pace. Explore Coursiv AI lessons if you want that grounding before choosing a tool.

Related guides: Zapier vs Power Automate and n8n course.

FAQ

Is n8n really free?
The self-hosted Community edition has no license fee for internal business, personal or non-commercial use under the Sustainable Use License. You still pay for hosting and maintenance. n8n Cloud plans are paid, with a free trial.
What are the security features of n8n?
Self-hosted n8n supports SSL, SSO on paid plans, security audits, node blocking, execution data redaction and telemetry controls. The pricing page lists an encrypted credential store on its plans. Hosted n8n data is stored in Frankfurt.
Can Power Automate run on a Mac?
Cloud flows are built in the Power Automate web portal, so the computer you use matters less. Desktop flows need Windows 10, Windows 11 or Windows Server, and ARM devices are not supported.
Do I need coding skills for n8n?
Not for simple workflows, since the visual editor covers most steps. Code helps for data reshaping and custom API calls, and it is required knowledge for running a self-hosted server safely.