TDEE Question

ashleycde

So it seems to be standard to calculate your daily calorie intake based on your TDEE -500 calories. I am currently eating 1200 calories daily, plus I eat back my workout calories. I calculated my TDEE based on the Mifflin-St Jeor formula (set as sedentary, as I work in an office and prefer to add my calories burned through working out seperately) and got 1668 (which is only 1168 after subtracting 500). For reference, by BMR is 1390. So, I guess what I'm asking is, are my net calories supposed to total 1168? I currently eat 1500-1800 based on how much I burn working out, but net 1200. I know 32 calories less doesn't seem like much to cut out, but I just want to know if that how much I'm supposed to be netting? I read so much on here about how anything less than 1200 calories consumed is bad, but it that total or net? I feel like I need a mathematician to work all this out! Also, if I'm totally off-base here and should be eating more, I can appreciate that as well, I'm just having trouble wrapping my head around all the numbers.

My numbers:
TDEE 1668
BMR 1390
Net calories: 1200
Consumed calories: 1500-1800 (depending on exercise)
Height: 5'6"
Weight: 136 lbs
Goal weight: 120-125 lbs (or, when I feel my weight fits my small frame again. The exact weight is irrelevant to me.)