The Handicap Calculation
What is a handicap?
Your golf handicap represents the number of strokes you are typically going to take above that taken by a "scratch" golfer. A “scratch” golfer is someone who plays of a 0 handicap.
Starting Handicap
Initially you need to identify your starting point for the handicap. Once this is done, each handicap round played contributes to an adjustment (up or down), depending upon your performance in that game.
Calculating your Starting Handicap
First you need to establish what your starting handicap would be.
What you need is the following information:
 Three scorecard for games played over a 18 hole course.
 The course standard scratch score (SSS) of the Tee you are playing on. Usually ranges between 7074.
CONGU allows double bogey (+2) maximum, on any hole. Therefore, if a player takes 8 shots (gross score) on a par 5, the maximum score allowed for that hole is 7 (adjusted Gross Score)
Round  Strokes  Standard Scratch  Gross Score  Adj. Gross Score 

1 
110 
71 
39 
35 
2 
103 
72 
31 
24 
3 
100 
72 
28 
25 
84 
From the above example add three adjusted gross scores i.e 84, and divide
by 3. i.e. 84 / 3 = 28. So your starting handicap would be: 28.0
Buffer Zones  adjusting your handicap
Your current handicap determines which buffer zone your fall into, and subsequently how your handicap increases or decreases. So with a handicap of 28.0 we would be in Buffer Zone 4. 

How does your Handicap Change?
Handicap adjustments are worked out on your adjusted golf score for the round.
The maximum score you can get for each hole is 2 shots above its par.

If you score 6 on a par 3 your adjusted score will be worked out on a score of 5 for that hole. If you scored 5 and get a shot for the hole your adjusted score for that hole would be 4. 
Using then Stroke Index (SI)
The number of shots received per hole is determined by the holes stroke index (SI).
If the hole has a stoke index (SI) of 6 then any golfer with a handicap of 6 and over will get a shot for this hole.
If a golfer has a handicap of 24 or more then they will receive 2 shots for the hole because (18+6 = 24).
Calculating the change
 Subtract your adjusted score from the Standard Scratch Score (SSS) for the course.
 Take this value (Gross Score) and subtract your current handicap to get your Net Score.
 Take your handicap category (1,2,3,4,5) and determine the adjustment based on your buffer zone.
Examples for a Category 4 golfer.
How does my handicap increase?  

Adjusted Score  SSS = Gross Score Gross Score  Handicap = Net Score If Net Score > Buffer then ADD 0.1 Running Handicap + 0.1 New Handicap calculated 
103  70 = 33 32  28 = 5 5 is > +4 28.0 + 0.1 28.1 
How does it stay the same?  

If your H/Cap Range was within you buffer zone then there would be no change in you handicap.  
Adjusted Score  SSS = Gross Score Gross Score  Handicap = Net Score Net Score is within buffer of +4 No Change to handicap 
101  70 = 31 31  28 = 3 3 is < +4 28.0 
How does my handicap reduce?  

Adjusted Score  SSS = Gross Score Gross Score  Handicap = Net Score Net Score < Handicap so reduction is 0.4 per shot Running handicap  reduction New Handicap Calculated 
95  70 = 25 25  28 = 3 3 * 0.4 = 1.2 28.0  1.2 26.8 