Grace, mercy, and peace are the three sisters of salvation. In these three words we have the gospel in capsule form. They sum up our complete salvation in Jesus Christ.
Grace is the foundation of our redemption, mercy is the manifestation of our redemption, and peace is the consummation.
Grace points to the past--our salvation goes back "before the foundation of the world" (Eph. 1:4). Mercy speaks of the present--it is manifested to us day by day. And peace is the consummation because it makes our future secure.
Grace is receiving what we do not deserve. Mercy is not receiving what we do deserve. We deserve to go to hell, but by His mercy we shall never go there. We do not deserve to go to heaven, but by grace we'll spend eternity there. Grace justifies. Mercy pardons. Grace admits us to heaven. Mercy saves us from hell. The death of Christ was enough to pardon us in mercy, but it took the resurrection to effect our justification. He "was delivered up because of our offenses, and was raised because of our justification" (Rom. 4:25).
And now, by faith, we have "peace with God through our Lord Jesus Christ" (Rom. 5:1). — M.R. De Haan
[Our Lord] took death upon Himself
On that cruel cross of pain,
And those who look in faith to Him
Eternal life shall gain! --Johnson
None live so serenely, so pleasantly, and so triumphantly as those who walk by faith.