i have a formula field that returns number of months record untouched. For smaller dates (within last 3 years range) it is working fine, if the date exceeds 4 years then result is exceeding a month, which shouldn't be. Any idea is appreciated.

Here is the current logic,

FLOOR(TODAY() - Date__c) / 30.4368



This is most probably due to leap years. You are using the average amount of days in a month, but this is not taking into account leap years.

As an alternative, consider this formula, which uses YEAR and MONTH functions instead of depending on days:

12*(YEAR(TODAY()) - YEAR(Date__c))
(MONTH(TODAY()) - MONTH(Date__c))

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