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The town is located on the north shore of Bancroft Bay, a long narrow bay that extends east from the south end of Lake Ontario. The town lies at an elevation of . It is situated along Highway 28 and its eastern terminus is at Highway 62. Bancroft's climate has four distinct seasons, with cold winters and warm summers. Snowfall occurs in all months except July and August when precipitation falls mainly as rain or drizzle (thundershowers). In winter, snow can fall as early as October but it usually stays until April or May before melting away completely; there are also occasional light snowfalls in June due to lake-effect snow squalls off Lake Huron/Georgian Bay which sometimes affect this area during summertime heat waves. The highest temperature ever recorded was on 16 July 1936 while the lowest temperature ever recorded was on 9 February 1934.<ref name="https://weatherspark.