Accounting Income (AKA Net Income)

Accounting Income
= (Operating Income Before Tax - Interest Paid) * (1 - Tax Rate)
= (Operating Income Before Tax - Capital Investment(#1) * Interest Rate) * (1 - Tax Rate)


(#1)(e.g.) Capital investment for an equipment. The equipment is to be financed entirely with a loan at an interest rate, with interest paid annually for the entire periods and full principal paid at the end of the year.

See also Net Income.