Moisturizing the intake air by spraying water in the liquid phase significantly lowers the intake air temperature, mainly due to the high value of latent heat of evaporation. The paper presents a methodology for calculating the parameters of the air-fuel mixture after water injection and during subsequent processes of the Otto cycle: compression, combustion and expansion of exhaust gases. For octane as a fuel, exemplary calculations have been carried out to investigate the effect of water injection on the composition of combustion products and selected parameters of the theoretical Otto cycle (temperature, pressure, output power and thermal efficiency).