In this letter, we propose a low complexity algorithm for extended turbo product codes by considering both the encoding and decoding aspects. For the encoding part, a new encoding scheme is presented for which the operations of looking up and fetching error patterns are no longer necessary, and thus the lookup table can be omitted. For the decoder, a new algorithm is proposed to extract the extrinsic information and reduce the redundancy. This new algorithm can reduce decoding complexity greatly and enhance the performance of the decoder. Simulation results are presented to show the effectiveness of the proposed scheme.