What it means
Bang on means exactly right, dead accurate, with no wobble in it. You use it when someone gets the answer, timing, price, distance, or read of a situation perfectly right. It also works for being exactly on time. Proper punchy little phrase, like the thing landed smack in the middle and stayed there.
Usage examples
"You said the bus would rock up at ten past, and it did. That call was bang on, mate, even my nan’s impressed."
"Your estimate was bang on, the bill came to exactly what you said."
"The train was bang on time for once, not a minute late."
"I guessed forty quid for the repair and I was bang on, not a penny off."
"We got there bang on seven and his dad was already lurking at the window with the lights on."
Where it comes from
It comes from an older English use of bang meaning exactly or directly, a sense recorded for a long time in British English. From there, bang on settled into everyday speech for something dead accurate or exactly on time, with that sharp little feeling of a clean hit landing right where it should.