How does fat loss work?

There are three components of total daily energy expenditure: the thermic effect of food (i.e., the energy cost of the digestion, absorption, and storage of dietary macronutrients), basal metabolic rate, and physical activity, which can be subdivided into volitional exercise and nonexercise activity thermogenesis (i.e., the energy expended performing common daily activities such as standing, walking, and fidgeting). For fat loss to occur, energy intake must be less than energy expenditure.