You would want to use selectionStart
to do this.
<textarea onkeyup="getLineNumber(this, document.getElementById('lineNo'));" onmouseup="this.onkeyup();"></textarea>
<div id="lineNo"></div>
<script>
function getLineNumber(textarea, indicator) {
indicator.innerHTML = textarea.value.substr(0, textarea.selectionStart).split("\n").length;
}
</script>
This works when you change the cursor position using the mouse as well.