Romans 4:5

Paul says that when a person trusts the God who justifies the ungodly, that faith is reckoned to him as righteousness. He is drawing on the example of Abraham, who "believed God, and it was counted unto him for righteousness." The striking phrase here is "him that justifieth the ungodly." God does not wait for people to make themselves worthy first; He extends right standing to those who come to Him in faith, even while they are still in need of His mercy. This overturns the assumption that one must first earn God's approval.

The contrast Paul draws is between wages and gift. In the previous verse, the one who works receives a reward as something owed -- a debt paid. But righteousness is not paid as a wage; it is "counted" or credited through faith. The word pictures something placed in an account. Faith takes hold of God's promise, and God responds by reckoning the believer righteous. This does not make faith a new kind of work that earns the verdict; rather, faith is the empty hand that receives what God gives. Paul's point throughout the chapter is that this pattern is ancient, rooted in Abraham, and open to all who trust the same God.