1 Do both the words mean the same?
Mercy and grace are closely related but yet has completely different meanings. They are two crucial Christian terms whose meanings are usually misunderstood. Both of these words are the utmost attributes of love. The two major works done by God is creation and redemption. His word of the invention shows his mighty powers and rescue demonstrates his marvellous love, demonstrated by his mercy and grace.
2 Definition of Grace
This word comes from the Greek word ‘Charmis' that means favour. Grace is God's activity within you to equip and empower you to go beyond your flesh and this gross world. Therefore, grace is the act of bestowing unmerited favour. It can also be said that grace is God extending blessing towards us and giving what we do not deserve.
3 Definition of Mercy
This is what God extends toward you regardless of our engagement. It is also a Greek word that means ‘eleos’ which means compassion and pity. Mercy means kindness and compassion. Grace completes when you are in heaven and mercy ends in the moment of death as your experience God’s judgment and justice. (See also Why is Christianity popular in Europe?)
4 How important are both
Mercy and grace are two sides of a coin, and both of them are equally important. Both these terms are associated with love as mercy is a warm-hearted love to the week, and grace is honest love to the unworthy. Mercy takes us towards forgiveness, and grace leads us to harmony.
5 The significant difference
Grace means getting what you don't deserve, and mercy means not getting what you deserve. It would be best if you had the grace most when you are in the middle of the sins, brokenness or suffering. In today's time, the judgment indicates what you deserve, which is why everyone wants both mercy and grace.