Your Handicap Index is a measure of your potential ability. With only 5 or 6 scores, the USGA Handicap Index formula only looks at the lowest differential. As you post more scores, it looks at more differentials. The differential is a computation that is based on the course rating and slope rating for the tees plays (Differential = (Adjusted Gross score - Course Rating) X 113 / Slope Rating)
So, an adjusted score (one that applies Equitable Stoke Control) of 95 played on a course with a rating of 71.5/125 would compute to a differential of 21.2 (rounded to the nearest tenth).
5-6: Lowest Differential
7-8: Lowest 2
9-10: Lowest 3
11-12: Lowest 4
13-14: Lowest 5
15-16: Lowest 6
17: Lowest 7
18: Lowest 8
19: Lowest 9
20: Lowest 10