How do we know that grace is different from mercy?

Understanding the distinction between grace and mercy is essential in Reformed theology. Mercy involves God not giving us the punishment we rightly deserve for our sins, which is eternal separation from Him. In contrast, grace is God granting us eternal life and blessings that we do not deserve. As articulated in Ephesians 2:4-8, it is through grace that we are saved by faith, emphasizing that both grace and mercy originate from God's love. This distinction drives home the point that salvation is entirely an act of God's sovereign will, highlighting His mercy in not punishing us and His grace in offering us salvation through Jesus Christ.