I don't use calculated shipping simply because it really doesn't work for my items. (How do you determine the dimensions of a ball of yarn or a spool of thread?)
I've got my shipping profiles all set up based on weight, in increments of 1 oz until 1 lb and then in 8 oz increments after that.
I use Etsy labels but use the Paypal packing slips simply because they use much less ink and paper (and I like them much better).
There are a number of good help topics on how to set up calculated shipping and shipping profiles here:
https://www.etsy.com/help/?query=shipping&page=1