I am so confused about how many calories I should be eating

I don't want to get onto a fad diet that will make me lose weight but completely restrict everything that I eat. I want to be healthier in every way

Listen to yourself. This is a lifestyle change.

Eat in a calorie deficit and you will lose weight. Science. This applies whether you exercise or not.

Eating back the calories you have exercised away makes the exercise pointless, if your goal is weight loss and calorie control.

Generally people here choose to aggressive a weight loss goal. The recommendation of 1 pound per week is what most except for those who are obese should start at. If you have only a little to lose less than 1 pound per week might be even better for you. The problem with 1200 calories is 1) Many people who are on 1200 calories don't eat back their exercise calories thus making their deficit much to large leading to lots of muscle loss. 2) Some people default to setting their activity level on sedentary when they are really lightly active, thus making the deficit bigger than it should be.

Since you are eating your exercise calories as you should, I would just stick to the MFP guidelines unless you have set your weight loss goal to 2 pounds per week. If you have done that switch to 1 pound per week and take the calorie guidelines for that eating most of your exercise calories back.

Follow what MFP has set for you for a few weeks and if you find yourself overeating frequently or getting too dizzy/shaky, increase your intake to 1300-1400 and see if that makes you feel better. Don't worry too much about the number if it works for you and is healthy (1200 or higher per day, according to most professionals). Some people on the boards have strong opinions about eating at 1200 calories, but that's mostly for highly active, male, and/or tall dieters. They generally aren't talking about sedentary, female, and/or short/petite dieters. If you can only do light activity, 1200 calories may be perfect for you.

As long as you're at a deficit, you will lose. I feel better eating around 1380 calories per day, some people might think that's not enough and that's alright because it's my journey and mine alone. Don't do what I've done and worry so much about the numbers that you lose sight of the journey and your goals because your consistent healthy habits are the important part.

ETA: Personally, I do not eat back my exercise calories, but I know a lot of people swear by it. Do what works for you. At 1200 calories, you should probably eat back the exercise calories.

Well how much do you have to lose? You might want to switch to 'lose 1lb a week' instead of 2 if you get hungry. Either way, 1200 calories plus exercise calories is fine, you just have to make sure to weigh all your food and not overestimate your exercise calories.

Exercise is never pointless...