Mainly nvarchar stores Unicode characters and varchar stores non-Unicode characters.
"Unicodes" means 16-bit character encoding scheme allowing characters from lots of other languages like Arabic, Hebrew, Chinese, Japanese, to be encoded in a single character set.
That means unicodes is using 2 bytes per character to store and nonunicodes uses only one byte per character to store. Which means unicodes need double capacity to store compared to non-unicodes.