Compression techniques are widely utilized to minimize redundancy in text file storage, which can be achieved through either lossy or lossless methods. During data transmission over communication networks, compression plays a critical role in optimizing storage requirements and enabling the transfer of more files. This paper introduces a novel algorithm for text file compression aimed at minimizing storage space. The algorithm works by shortening the length of the data using a numbering map technique, significantly reducing the data span. This approach employs matrix manipulation, adding computational complexity but enhancing efficiency. The core idea is to perform lossless compression by leveraging numbering maps, matrix-based mathematical models, and ASCII encoding. Experimental results demonstrate the algorithm’s effectiveness based on statistical metrics, with comparative analysis highlighting its superior performance and benefits.