The short answer
Zapier works well for simple, linear automations between popular SaaS products. If you need to connect Typeform to Mailchimp without code or a server, it is a sensible option.
n8n is better suited to complex, multi-step workflows, AI automation, custom logic and cases where data privacy or cost at scale matters.
We use n8n for almost every client engagement because most production workflows eventually need more control than a simple connector can provide.
The main differences
Cost model
Zapier charges for task executions, and every step in a workflow counts. A 5-step workflow running 1,000 times per day consumes 5,000 tasks per day, or about 150,000 per month. On Zapier's Business plan, that can cost £600 to £800 plus per month.
Self-hosted n8n has no per-execution charge. You pay for the server, typically £20 to £50 per month on a basic VPS. For a high-volume workflow, that can reduce the running cost by an order of magnitude.
Customisation
Zapier deliberately limits what users can change. That makes simple use cases easier, but it becomes restrictive when the process needs custom behaviour.
n8n gives you several ways to handle those cases:
- JavaScript or Python code nodes for custom logic
- HTTP requests that connect to any API, including services without a pre-built integration
- Direct connections to PostgreSQL, MySQL, MongoDB and other databases
- File handling, data conversion and conditional logic
AI integration
n8n has native AI nodes for calls to Claude, GPT-4.5 and Gemini, as well as embeddings, vector store operations, tool-using AI agents, memory and context management.
Zapier can make basic API calls, but complex, multi-step AI pipelines are harder to build and maintain there. n8n lets the team see and control each stage of the workflow in one visual interface.
Self-hosting and data privacy
Zapier is a SaaS product, so workflow data passes through its servers. That can create a compliance concern in financial services, healthcare and legal work.
n8n can run on your own infrastructure, which keeps data inside your environment. This can make GDPR compliance and the handling of sensitive documents or customer information more straightforward.
When to use Zapier
Zapier is a good fit when:
- You need a simple workflow running in under an hour
- The process is genuinely linear, with A connecting to B when X happens
- You have no technical resources and do not want to manage a server
- You are testing whether an automation deserves a more permanent build
When to use n8n
n8n is usually the better choice when:
- The workflow will run thousands of times per month
- You need custom logic, code or calls to non-standard APIs
- The process includes several AI steps
- Data privacy matters, particularly in financial services, healthcare, legal work or a larger company
- You want to own and understand the automation infrastructure
How we use n8n at Squirrel AI
Almost all our client automations run on n8n. A typical setup includes:
- n8n on a dedicated VPS, usually DigitalOcean or Railway, as the workflow engine
- Claude or GPT-4.5 through an API for classification, summarisation or generation
- PostgreSQL or Supabase for workflow data and logs
- Webhooks that receive triggers from Shopify, Stripe, CRMs and other systems
This setup is reliable and inexpensive at volume. A workflow that costs £500 plus per month on Zapier can run for £30 to £50 per month on n8n.
The build versus buy decision
You do not have to choose one platform for every process. We often use Zapier for a simple bridge while building more involved n8n workflows alongside it.
"When a new lead arrives, add it to a spreadsheet" is a reasonable Zapier workflow. "When a new lead arrives, research the company, score it against our criteria, draft a personalised email and alert the sales representative if it scores above 7/10" is better suited to n8n.
Squirrel AI builds working automations for operating companies, with each project tied to a defined P&L result. Book a discovery call to discuss which platform fits your process.