There are several different calculations that you could be doing:
Increasing/Decreasing original prices to find new ones:
finding 20% off a price - i.e., a sale discount, for example.
In this case, multiply the original price by 0.8, to find the 80% of the price you have to pay. (or equivalently, multiply the original by 0.2, to find 20% of the price, and subtract it from the original).
increasing a price by 20% - e.g., prices needing to rise because costs going up
Here you multiply the original by 1.2, to find 120% of the original amount. (or again, you could multiply the original by 0.2, to find 20%, and then add it on).
OR - reverse percentages, when you are trying to find original prices from ones that have been increase/decreased:
finding the original price when what you have is the price that has already been increased by 20%. This is not the same as "taking off 20%".
In this case, dividing by 1.2 is fine. The original price had been multiplied by 1.2 to get the final price, so you can undo that to get back to the original.
Or if something was in an 80% sale and you wanted to know the original price, you could divide by 0.8 to get back to the original.