Golf handicaps are meant to even the playing field between two or more golfers of differing abilities. The calculation of a golf handicap is based on both the scores that a golfer has historically achieved as well as the difficulty of the courses on which he has played. Thanks to various rating systems implemented by the U.S. Golf Association, the calculation of a golf handicap is the same regardless of whether a golf course is par 72 or not.
Golf Score and Adjustments
The most important piece of data in a golf handicap calculation is your golf score. While all of the other variables of the golf handicap calculation are the same for all golfers, only you are in control of your score. In order to prevent very bad scores on a single hole from dramatically affecting the handicap calculation, the USGA uses a system known as "equitable score control." ESC restricts golfers with lower handicaps from recording scores that are too many strokes above par and instead requires them to report scores that are more in line with their historic ability.
USGA Course Rating
Every golf course that can be used to compute a handicap has been evaluated by the USGA and assigned a rating. The rating is meant to indicate what a golfer with a zero handicap, also known as a "scratch" golfer, should shoot on average for that particular course. As most courses are par 72, most ratings are between the mid-60s for easier courses and the mid-70s for more difficult ones.
USGA Course Slope
Like course rating, course slope is another number that the USGA uses to rate the relative difficulty of a given golf course. However, unlike rating, slope is meant to reflect the difficulty of the course for the average amateur golfer rather than for a professional or highly-skilled amateur. Course slopes range from 55 to 155, with the average course rated 113.
Handicap Calculation
To compute your golf handicap, take your golf score and subtract the course rating. Multiply this by the slope of the course, then divide by 113. Multiply this final figure by 0.96 to arrive at your handicap. At least five complete scores are required to compute a handicap, and once you have 20 or more scores, only your top 10 are used for handicap calculation purposes.
Meaning
Your golf handicap is meant to reflect your potential ability relative to other golfers. While the actual handicap number does not strictly represent anything, it does offer a very rough approximation of the number of strokes over par that you have the potential to score on average. The difference in handicap between two players is often used as a guide as to the number of strokes that one golfer can be expected to beat another golfer by on any given day.
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