FLAC (Free Lossless Audio Codec) compresses audio the way ZIP compresses a document: smaller on disk, bit-for-bit identical when it's decoded. Expect around half the size of the equivalent WAV with no quality cost at all, which makes it the format of choice for archiving a CD rip or a master recording.
Worth being honest about one thing: converting an MP3 to FLAC does not make it lossless. It freezes the quality you already have into a much bigger file. FLAC pays off when the source is genuinely lossless.
FLAC vs WAV vs MP3
WAV is uncompressed and universally accepted by editing software. FLAC holds identical audio in about half the space and carries tags and cover art properly, which WAV handles poorly — that makes it the better archive format. MP3 is a tenth of the size of either but discards data permanently, which is exactly the right trade for a phone or a car stereo. Many people keep FLAC at home and generate MP3s for portable devices from it.