calories earned from exercising

Yes. Shoot for 1200 Net Calories.

Here's how it works: You probably need around 1500 calories to maintain your current weight and live your regular life with regular activities (when you chose sedentary, light, active, etc).

Then, MFP lowers your recommended calorie intake goal to 1200, a 300-calorie deficit to achieve weight-loss. By eating slightly fewer calories than what your body needs to maintain, that will result in weight loss.

When you exercise, you are able to "eat those calories back" to achieve a 1200 NET calorie intake. Let's say you eat 1200 healthy and nutritious calories, then you go for a great run and burn 300 calories, you're now able to "eat back" those 300 calories so that your net intake equals 1200.

Keep in mind that not all calories are the same. A 150-calorie Snickers bar, and that is NOT equal to a 150-calorie grilled salmon fillet. Yes, they're both 150 calories, but they are NOT the same. In MFP look for your daily nutrition details and pay attention to the fat, carbs, and protein ratio of what you're eating.