The entire difference comes down to one question: does the order of selection change the outcome?
Both permutations and combinations count the number of ways to choose r items from a set of n — the difference is entirely about whether order matters. A permutation counts arrangements where order matters: picking A-then-B is a different outcome from B-then-A. A combination counts selections where order doesn't matter: {A, B} is the same group regardless of which one was picked first. Because every ordered arrangement can be unwound into the same unordered group in r! ways, permutations always outnumber combinations for the same n and r, by exactly a factor of r!.