What it is for
It answers “what was it before the increase?” Price with tax → price before tax, price with markup → cost, salary after a raise → before it. The percentage was applied to the original number, so you remove it by dividing, not subtracting.
If the number was reduced
For a sale price the formula is similar: original = sale price / (1 − discount/100). If an item costs 750 after 25% off, it was 750 / 0.75 = 1,000. In the calculator enter a negative percentage: −25.
How much of the total is the percentage
In a total that includes 20%, the added part is 20/120 = 16.67% of the total. That column of the chart lets you pull tax or markup out of a total directly.