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The units for torque, as you stated, are Newton-meters. Although this is algebraically the same units as Joules, Joules are generally not appropriate units for torque.
Another way of expressing the above equation is that torque is the product of the magnitude of the force and the perpendicular distance from the force to the axis of rotation (i.e. the pivot point). Let the force acting on an object be broken up into its tangential (Ftan) and radial (Frad) components (see Figure 2).