Why a multiplier
Adding 20% means keeping the whole number (100%) plus 20%: 120% = 1.2. One multiplication instead of two steps means fewer mistakes, especially in spreadsheets: =A1*1.2.
Successive increases compound
Two 10% increases give +21%, not +20%: 1.1 × 1.1 = 1.21. That is how compound interest and yearly raises work.
Where you need it
Retail markup, price including tax, salary or rent indexation, growing a figure by a set rate. To remove a percentage that was already added, use the reverse percentage page.