MUST HAVE 3 ROUNDS TO ESTABLISH YOUR HANDICAP............. * ARE THE ROUNDS THAT ARE INCLUDED INTO YOUR HANDICAP..... ONLY YOUR TOP SCORES ARE CALCULATED.
What numbers do you have to have in order to perform the handicap index calculation? The formula requires the following:
Have all that? OK, we're ready to get into the math of the handicap formula.
Using your adjusted gross scores, the course ratings and slope ratings, Step 1 is calculating the handicap differential for each round entered using this formula:
(Score  Course Rating) x 113 / Slope Rating
For example, let's say your score is 85, the course rating 72.2, the slope 131. The formula would be:
(85  72.2) x 113 / 131 = 11.04
The sum of that calculation is called your "handicap differential." This differential is calculated for each round entered (minimum of five, maximum of 20).
(Note: The number 113 is a constant and represents the slope rating of a golf course of average difficulty.)
Not every differential that results from Step 1 will be used in the next step.
If only five rounds are entered, only the lowest of your five differentials will be used in the following step. If 20 rounds are entered, only the 10 lowest differentials are used. Use this chart to determine how many differentials to use in your handicap calculation.
Number of Differentials Used 

Rounds Entered  Differentials Used 
56 rounds  Use 3 lowest differential 
78 rounds  Use 4 lowest differentials 
910 rounds  Use 5 lowest differentials 
1112 rounds  Use 6 lowest differentials 
1314 rounds  Use 7 lowest differentials 
1516 rounds  Use 8 lowest differentials 
17 rounds  Use 8 lowest differentials 
18 rounds  Use 9 lowest differentials 
19 rounds  Use 9 lowest differentials 
20 rounds  Use 10 lowest differentials 
Get an average of the differentials used by adding them together and dividing by the number used (i.e., if five differentials are used, add them up and divide by five).
And the final step is to take the number that results from Step 3 and multiply the result by 0.96 (96percent). Drop all the digits after the tenths (do not round off) and the result is handicap index.Or, to combine Steps 3 and 4 into a single formula:
(Sum of differentials/number of differentials) x 0.96
Let's give an example using five differentials. Our differentials worked out to (just making up some numbers for this example) 11.04, 12.33, 9.87, 14.66 and 10.59. So we add those up, which produces the number 58.49. Since we used five differentials, we divide that number by five, which produces 11.698. And we multiply that number by 0.96, which equals 11.23, and 11.2 is our handicap index.
The Callaway System 
Gross Score  Handicap Calculation  

    70  71  72 
Scratch 

73  74  75      1/2 worst hole score + adjustment  
76  77  78  79  80  Worst hole score + adjustment  
81  82  83  84  85  1 1/2 worst hole scores + adjustment  
86  87  88  89  90  2 worst hole scores + adjustment  
91  92  93  94  95  2 1/2 worst hole scores + adjustment  
96  97  98  99  100  3 worst hole scores + adjustment  
101  102  103  104  105  3 1/2 worst hole scores + adjustment  
106  107  108  109  110  4 worst hole scores + adjustment  
111  112  113  114  115  4 1/2 worst hole scores + adjustment  
116  117  118  119  120  5 worst hole scores + adjustment  
121  122  123  124  125  5 1/2 worst hole scores + adjustment  
126  127  128  129  130  6 worst hole scores + adjustment  
131  132  133  134  135  6 1/2 worst hole scores + adjustment  
2 
1 
0 
+1 
+2 
Adjustment factor for handicap 
Finally, adjust the sum of those scores by the
adjustment factor. To find the adjustment factor, look up your score in the
above table. At the bottom of the table, in the same column, is the adjustment
factor. If your sum of worst holes is 18, and your gross score is 89, than your
adjustment factor is +1 and your Callaway handicap is 19.
Your net score
is simply your gross score minus your Callaway handicap (in the above example,
your net score is 89  19 = 70).
Here is an example: Imagine a Callaway
tournament where you shoot a 95. You look up in the table and find that your
Callaway handicap is your 2 1/2 worst scores plus an adjustment factor of +2.
Your four worst scores are an 8 on a par 5, a 7 on a par 5, a 7 on a par 4, and
a 7 on a par 3. But, your worst score, the 8, took place on the 17th hole and
therefore cannot count towards your Callaway handicap. In addition, because your
7 on the par 3 is more than twice the par value, it can only count as a six
towards the Callaway handicap. The resulting handicap is 7 + 7 + 6/2 + 2 (Adj
Factor) = 19. Your net score is 95  19 = 76.
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