In this work, we consider economic model predictive control (EMPC) with extended horizon based on an auxiliary controller. The extension of the horizon is realized by employing a terminal cost which characterizes the economic performance of the auxiliary controller over a finite terminal horizon. The proposed EMPC design is easy to construct and computationally efficient. We analyze the stability and performance of the proposed EMPC design with special attention paid to the impact of the terminal horizon. It is shown that for strictly dissipative systems satisfying mild assumptions, a finite terminal horizon is sufficient to guarantee the convergence and performance of the EMPC to be approximately upper-bounded by that of the auxiliary controller. (C) 2016 Elsevier Ltd. All rights reserved.