Question: Preacher, what is the difference between mercy and grace?

Answer: The classical text on this question is Ephesians 2:4-10 (please read). “Mercy” translates a word which is defined as compassion, pity, clemency.  “Grace” translates a word defined as favor, gracious care or help, goodwill.  From these definitions and the manner in which these words are used in the text, it appears that God’s grace may be viewed as the response of his mercy.  His mercy moves him to be gracious to us, i.e., his compassion inclines him toward showing us his favor.  We are saved by this goodwill which God has toward us because of his mercy.  (How this is possible is the subject of Paul’s discussion of justification, e.g., in Romans 1-5, and is another question altogether).  By this we are taught to be both merciful and gracious.  We ought to feel pity for others but also to give them what mercy demands.  We ought to be compassionate toward people who sin against us but also to forgive them and exhibit good will toward them.