Li-ion is the most commonly used battery chemistry in portable applications nowadays. Accurate state-of-charge (SOC) and remaining run-time indication for portable devices is important for the user's convenience and to prolong the lifetime of batteries. A new SOC indication system, combining the electromotive force (EMF) measurement during equilibrium and current measurement and integration during charge and discharge, has been developed and implemented in a laboratory setup. During discharge, apart from simple Coulomb counting, the effect of the overpotential is also considered. Mathematical models describing the EMF and the overpotential functions for a Li-ion battery have been developed. These models include a variety of parameters whose values depend on the determination method and experimental conditions. In this paper the battery measurement and modeling efforts are described. The method of implementing the battery model in an SOC indication system is also described. The aim is an SOC determination within 1% inaccuracy or better under all realistic user conditions, including a wide variety of load currents and a wide temperature range. The achieved results show the effectiveness of our novel approach for improving the accuracy of the SOC indication.