TDEE Question

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I'm starting the TDEE method as eating 1200 calories per day doesn't seem to be working anymore and i've hit a plateau. I worked my TDEE out to be 1922 so i'm going for 20% off leaving me with 1537calories per day. What i'm wondering though is if i've to hit my bmr of 1485calories but have those extra calories while losing weight what happens when i exercise? Should i eat back the calories i've burned?

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