naveen RSSI fluctuations are normal for BLE, even in a quiet room. The key is not to calculate distance from a single raw RSSI value. Instead, collect several readings (e.g. 10–20 samples over a few seconds) and apply a simple filter first:
Moving average – easy and effective.
Median filter – discard a few high/low values and take the middle one.
Only feed this stable, filtered RSSI into your distance formula. This alone will smooth out the jumps significantly.