A fast algorithm with low memory usage is proposed to generate the hologram for full-color 3D display based on a compressed look-up table (C-LUT). The C-LUT is described and built to reduce the memory usage and speed up the calculation of the computer-generated hologram (CGH). Numerical simulations and optical experiments are performed to confirm this method, and several other algorithms are compared. The results show that the memory usage of the C-LUT is kept low when number of depth layers of the 3D object is increased, and the time for building the C-LUT is independent of the number of depth layers of the 3D object. The algorithm based on C-LUT is an efficient method for saving memory usage and calculation time, and it is expected that it could be used for realizing real-time and full-color 3D holographic display in the future.