Paying for sex is considered a high-risk sexual behavior, especially among men. Men who pay for sex are perceived to be a bridge group for sexually transmitted illnesses. In sub-Saharan Africa, the prevalence of paid sex among men is approximately 4.3%. Men paid for sex are not studied in Ethiopia. Therefore, the objective of this study was to identify factors associated with men paying for sex in Ethiopia. We analyzed data from the 2016 Ethiopian Demographic Health Survey. In the analysis, 9070 men were included. To identify factors associated with paid-for sex among men, we used a multilevel logistic regression model. A p value less than 0.05 was considered to indicate statistical significance at the 95% confidence interval (CI). In this study, 509 (5.6%) men were ever paid for sex. Men who paid for sex were significantly more likely to be rich [Adjusted Odds Ratio (AOR) = 1.70; 95% CI 1.287, 2.246], widowed or separated (AOR = 1.97; 95% CI 1.142, 3.396), had more sexual partners [AOR = 1.03; 95% CI 1.005, 1.063], had ever been tested for human immunodeficiency virus (HIV) (AOR = 1.50; 95% CI 1.173, 1.916), drank alcohol (AOR = 4.15; 95% CI 3.086, 5.576), and chewing khat (AOR = 2.28; 95% CI 1.822, 2.85); men who had ever paid for sex were significantly less likely to have higher education (AOR = .63; 95% CI .438, .898) and the lowest age at first sex (AOR = .90; 95% CI .870, .924). In conclusion, educational level, wealth status, province, marital status, age at first sexual intercourse, number of sexual partners, HIV status, alcohol consumption status, and chewing khat were significantly associated with men’s paid-for sex. From a public and sexual health perspective, more education is needed for illiterate, widowed, separated, and rich men. Additionally, preventive measures should be taken against men’s behavior through the use of alcohol or khat, having many sexual partners, and having young men.