31÷32=0.9688
Multiply whatever your speedo is reading by that factor to determine your true speed. Assuming your speedo is correct at present.
60 indicated will be 58, etc.
Are you sure that's the formula? I can see that .9688 is the percentage of change of the new gear, but does that percentage of change directly relate to the percentage of change in the spedo?
Yeah, all the other values (primary and trans ratios, rear wheel sprocket, distance traveled per tire rev) remain the same and factor out so the relationship you're looking for is simply the old and new number of cogs on the one item you're changing.
Your speedo is likely somewhere in the neighborhood of a few percent high already, so this change in most cases is going to increase the discrepancy. Say you were previously 97% of indicated. That times another 97% is going to become 94%, or roughly 56 at 60 indicated, and it's all down hill from a new rear tire. Your odometer will also be high by the inverse of whatever percent error you end up with, as well your fuel mileage if you don't factor it when you make that calculation. (42 "indicated" mpg will be 39.5 @ 94% and it would really take you another few tanks of fuel to get to the 10k miles shown as accumulating on the odometer, etc.)
I'd probably opt for the Dakota Digital unit were I in your shoes. It's certainly cheaper at this point than getting a TTS kit :-)