Need help- calories+ exercise = net calories HOW DO I BALANCE?

  I have recently started working out in the last few weeks.  I keep track on thedailyplate and my target is 1200 calories.  So my question is, when I am supposed to take in 1200 calories, is that NET calories or gross?  If I burn 500-1000 or more calories, should I be eating more than 1200 calories in a day?  I am not sure how to balance this whole thing and I wanna make sure I am doing this right because I still have at least 30 more lbs to lose and I don't want to hang in starvation mode.  So if you know anything about this at all, PLEASE let me know.  I think I will repost this on the food board too.  Thank you in advance!

Probably you can add a little bit of calories back, but not 500.  But it's going to be trial and error.  You just have to figure out what level will keep you losing.  And don't expect to figure it out in a couple of weeks.  You need to leave plenty of room for ups and downs before deciding a certain calorie level is optimal for loss.

I track my calories on MyFitnesspal.com and my target is 1200. When I workout with my heart rate monitor and get my total calorie burn after a workout, I add that to my base and eat below that number. So for example, if I've burned 500 calories, then I'm allowed to eat 1700 calories a day. If I'm trying to lose pounds, I stay as close to that 1200 as possible so that I'm ending my day at a deficit. Caloric deficit (short of surgery, obviously) is the only way to lose the weight. Calories in must be < Calories out. Hope that helps.