Do you eat your exercise calories when MFP ups your daily intake after you log a workout?

I eat back half. My max is 1380 right now, but I typically exercise more than two hours a day. (I don't necessarily mean high-intensity. I walk a lot. I also do strength training with light dumbbells and body weight three times a week. If I can't get in a two-hour walk, I either do an hour on a fitness glider or a cardio-and-dumbbell interval workout).

When I started MFP over 8 months ago, I weighed 254 lbs, my calorie max was 1710, and just getting out and taking a 25-minute walk every day was a big deal for me. At that point, we were talking about something on the order of 100-200 exercise calories, and I didn't eat them back deliberately. I didn't have a digital food scale; I had one of those old models like this:

(Too much taring makes them less accurate over time. And I'd had it for some time.) And I was still relying mainly on measuring cups. I figured to use the exercise calories as a cushion against logging inaccuracies. And at my weight, on my calories, that was fine.

But now? Like I said, I'm on fewer calories and more exercise. If I don't eat back calories, I get hungry and snappish. Plus I like the idea that if I choose to have a sandwich for lunch, it doesn't mean giving up rice or stir-fry sauce for supper, when I've got room for both. I still eat half because MFP can be inaccurate about calories burned. I can be inaccurate. I clocked a recent walk at 3.25 mph by mapping my route ahead of time and then timing my walk. But does that mean that every walk I take is at that pace? Or do I slow down in spots if I'm not focusing on speed, if it's a hot day, if my route involves more uphill, etc? So I keep a buffer, but I eat about 1750 most days, instead of 1380.

I've set my MFP deficit for 1lb/week, but with 53 lbs to go to goal, 1.5 is still safe. I'm finding that eating back half my exercise usually has me averaging that 1.5 without having to reduce my calorie budget. Some weeks, it's 1.2. Some weeks, 1.8. I've had occasional 3-lb 'whooshes', almost immediately followed by a very modest gain or loss. But on average, I'm right about where I should be.

Normally I don't eat back the calories I've lost unless I'm under 1200 for the day lol

I'm not anymore since I follow a TDEE calculation, but that is how MFP is set up. http://community.myfitnesspal.com/en/discussion/10503681/exercise-calories-do-i-eat-these-a-video-explanation

I've had some issues with MFP reducing my exercise calories for the day AFTER I've eaten them. In the evening it would tell me I earned, say, 500, so I would eat back half of them, but the next morning when I looked at the previous day it would say I only earned 200 for that day, meaning I went over. This is all with a Fitbit Alta HR.
So I've been sticking to 1400 a day, sometimes that's a small fraction of my exercise calories, and sometimes it's almost all of them. My deficit for the week works out, though.

I use the TDEE method but I exercise pretty much daily so my calorie allowance went up from using MFP and exercise calories - I follow it and don't consume additional calorie exercises . It just made more sense to me but if you are not consistent I would follow the MFP method

If I want to I do!! Maybe I have a cheat treat to tackle a craving or just a reward. I don't do it just because it's there.

There is another factor that is not touched by the video or the replies here and that is the intensity of the activity.

People generally refer to exercise and workouts, but all activity burns/earns calories.

So my 2p for weight loss (not so much for people burning 1k+everyday in a gym)
If you had an initial goal of 1200 and ate all that, and you "earned" 100 bonus calories from a walk in the park, you don't need to go nuts and force eat it back. You can choose to eat or not.

If you had 1200 and start hitting a gym for lets say 500 bonus a day, then yes obviously you need to eat at least a decent portion back.

Something you could do is like if your earned cals go over 15% of your initial goal, you should be eating back, if not its just an extra that you can choose to save or use.
Ofcourse depends a bit on your personal goals and not applicable for all. Keep measuring and weighing and see how it affects you longer term.

I eat as many back as I can but I have a Garmin fr35 and fitbit flex 2 (Only wear for sites that reward steps) connected and I have to say I'm losing just over 1lb/ week (some wks more some less) and have done since 135lb ago

I don't go by net calories. My window is 1200 minimum, 1400 max, regardless of calories burned. Just remember plenty of protein, a good daily vitamin supplement and strength training to ward of muscle deterioration while trying to lose weight.