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A 15% error isn't a result of tire size unless you are running 145-12's from an old Mini!
We have the same situation: my son's '81 also reads 14% high on the odometer and about the same on speed. The manual trans was replaced by a previous owner, and probably came from a later 240 with a 3.31 axle. So the speedo gear in that trans is set to show 60MPH at 2800 driveshaft RPM. With his 3.73 axle, that RPM comes at 53MPH and the speedo then shows 60.
I checked the speedo gear - it is Black and has 20 teeth. The Volvo parts guy told me that's the most they have. (The more speedo gear teeth, the slower the speedo will show). Pull your speedo gear and if it's less than 20 teeth, you can make at least a partial correction with a 20-tooth unit. Other options are: (1) live with it and do the mental math; (2) pull the trans apart and change the tailshaft's speedo drive gear ($$$ and big job); (3) get a specialist speedo shop to build a mid-cable reducing gearbox ($$$).
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Bob (81-244GL B21F, 83-244DL B23F, 94-944 B230FD; plus grocery-getter Dodge minivan, MGB, and numerous old motorcycles)
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