What is the meaning of 'imputed righteousness' in the Bible?

Imputed righteousness is a key concept in Reformed theology, indicating that when an individual believes in Christ, God credits the righteousness of Jesus to that person. In Romans 4, Paul explains that this imputation occurs through faith, emphasizing that it is a gracious act of God, not based on human works or merit. This means that believers are declared righteous before God because of Christ's perfect obedience and sacrificial death. Imputed righteousness provides assurance of salvation, as it highlights that acceptance before God is grounded in Christ alone, offering believers hope and steadfastness in their relationship with God.