[User-Luser]

But basically, if the total amount of food I eat in a day = 500 Calories, and at the gym I am burning? 130 Calories, does that mean I am not burning enough or is the total amount of Calories taken in a day mostly converted to energy? If so, how do I know how much Calories has been stored as fat?

If the amount of food you're eating in a day amounts to 500 calories then you're going to end up with a case of malnutrition very quickly. Aim for 1800 calories a day if your goal is weight loss. This should, in a 25 year-old man engaged in moderate aerobic activity, produce a caloric deficit of ~800 calories per day, equal to about 1.5 pounds of fat lost every week.

The calories you burn while on the treadmill will never close to equal the total amount you burn off in a day just hanging around. Aerobic activity serves a couple of purposes when it comes to weight loss:

1) The average man who doesn't do too much exercise might go through ~2200 calories a day just living and breathing. The extra 200-300 calories you burn while on the treadmill provides a deficit (assuming the exercise is not accompanies by increased food intake) that leads to weight loss all by itself. The point of exercise is not to compete with the normal output. Nobody outside of elite athletes exercises 2000 calories worth a day. But iff, instead of 2200 you go through 2500 then over time this deficits amounds to pounds lost

2) The amount of calories burned while actually exercising is supplemented by the "training effect". If you engage in strenuous cardiovascular activity on a regular basis then your body repsonds by increasing your metabolism even when you're not exercising. So while the treadmill might say 200 calories burned during your exercise session, regular exercise has so increased your resting metabolism that you also burn another 200 calories throughout the day "for free". So 2200 + direct exercise = 2400 + training effect = 2600. Intake = 1800, deficit = 800 calories. 1 pound of fat = 3900 calories. Minus one pound of fat every 5 days or so. Actual weight loss may be higher, as some loss is non-caloric (so called water weight).