A golf handicap is a numerical way to express the differences in abilities between golfers. The United States Golf Association has a formula for computing golf handicaps, so that all handicaps are determined using the same formula. Computers usually do the computation, but you can do it manually in just a few steps.
USGA Course Slope
Slope is an important component of the handicap formula because it factors in the relative difficulty of a golf course for an average amateur golfer. Golf course slope ratings range from 55 to 155, with a course of average difficulty rated 113. Every USGA-sanctioned golf course has a slope rating listed on the scorecard.
USGA Course Rating
Similar to course slope, course rating is a reflection of the difficulty of the golf course. However, unlike slope, a course rating represents what a professional or "scratch" golfer would shoot on a particular course. Since most golf courses are par-72, most course ratings range between the mid-60s and the mid-70s. Slope and rating are different because certain obstacles present more of a challenge for average golfers than they do for expert golfers.
Score
The variable input that goes into the golf handicap formula is your actual golf score. While course rating and slope rarely change for a particular course, your golf score probably fluctuates from round to round. Because of this variation, the more scores you enter into the handicap calculation, the better. Once you have recorded 20 or more scores, use only your best 10 for computing your handicap.
Formula
To compute your golf handicap, take your raw score and subtract the course rating. Multiply this amount by the slope of the course, and divide by 113. Multiply this resulting figure by 0.96 to compute your handicap index. Your handicap is not valid by USGA standards until you have recorded scores for at least five rounds.
Uses
While your golf handicap is not a true reflection of how many strokes over par you will shoot, it is a crude approximation. Golf handicaps are an estimate of how many strokes better a golfer is in comparison to other golfers, with the lower-handicap player being the better player. For example, if you have a 10 handicap and another golfer has a 5 handicap, the 5-handicap golfer can be expected to shoot about 5 shots per round better than you.



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