A poster is defined by the size it ends up, not by how many pieces it takes to get there. So this preset starts from the finished width and works backwards.
Useful sizes to aim at. A1 is 594 × 841 mm and A0 is 841 × 1189 mm, which is why the default here is 840 mm wide: an A0-width poster built out of A4 sheets. In inches, 18 × 24 and 24 × 36 are the two most common US poster sizes, with 27 × 40 being the film poster size.
How many sheets that takes depends on the shape of your image as well as the width. A 4000 × 3000 photo at 840 mm wide on A4 portrait comes to 15 sheets (5 across × 3 down). The same photo at 594 mm comes to 8 sheets (4 across × 2 down). Switch to A3 and it drops to 6 sheets (3 across × 2 down).
Resolution decides whether the size is realistic. A poster viewed from a few feet away holds up at around 150 dpi. Something people will stand in front of wants closer to 300. The tool shows the effective dpi for the width you ask for, which is the honest answer to "can I print this that big".
Overlap and cut marks come as standard, because a poster made of twelve sheets has a lot of joins and every one of them is a chance to be a millimetre out.
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