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There are different types of intermittent fasting, but the most common involves only eating within a certain window of time each day. For example, you might only eat between 12pm and 6pm each day, giving you a 6-hour “feeding” window when you eat all of your calories for the day. That means you’ll be fasting for 18 hours in between. Your intermittent fasting ratio would then be 18/6.
You’re consuming less food and thus spending less money. Rather than overeating to put on 1 pound of muscle and 4 pounds of fat in a week or two, you’re aiming to eat exactly enough to put on 1 pound of muscle without adding much fat on top of it.  Yeah, it’s a delicate balance, but there’s far less swing involved. You are just slowly, steadily, and consistently building muscle and strength over many months.
When you eat a meal, your body spends a few hours processing that food, burning what it can from what you just consumed.  Because it has all of this readily-available, easy to burn energy (thanks to the food you ate), your body will choose to use that as energy rather than the fat you have stored.  This is especially true if you just consumed carbohydrates/sugar, as your body prefers to burn sugar as energy before any other source.