"For by grace are ye saved through faith; and that not of yourselves; it is the gift of God." Ephesians 2:8
Grace is the love and mercy of God in action. Mercy is negative, and love is positive; both together mean grace. To show mercy in love is grace. God showed mercy in love when He sent His Son to bear our sins in His own body on the cross (John 3:16).
The Open Bible, Thomas Nelson, Publishers