In Ethiopia, education is considered as a national policy of top priority. Because of this, the analysis of the returns to education has to be focused. However, most studies focus on some segments of the population and limited in numbers. This study uses the national Household Consumption Expenditure Survey 2010/2011 to give thorough analysis of the private rate of returns to education in Ethiopia. To meet this objective the study uses the Mincerian earning model. By applying this model the study shows the private rate of return to extra year of education in Ethiopia is 8%. An additional year of schooling enables males to derive 7.65% earnings while females derive 7.18%. Nationally the study finds out the Mincerian rates of return to primary, secondary and tertiary education were 6%, 18% and 21% annually. The overall rates of return to education levels show the highest earning are related to the higher levels of education. Also females enjoy higher return at primary level while males had higher return at secondary and tertiary level. To be married shows higher rate of return at all levels of education than unmarried. Also returns show a significant difference among regions. Tigray region has higher return while Addis Abeba shows the lowest. The rate of return to education at primary and secondary level of education is a little higher in self employment division. But at tertiary level of education the return was significantly higher for non-self employment. Married has higher earning in self employment than unmarried. Females earn more than males in the self employment. Finally, an additional year of education increases earning by 7% annually in the agriculture sector which is higher than the other sectors. While the rate of return for one additional year of education in the industry and service sector is almost equal.