Keep in mind that it's going to go 1/8" straight back on a line going through your axle and BB spindle, so it's going to move a bit more than that up the dropout, maybe like 20% more depending on the dropout angle. Trig is your friend. You clearly have the room for that, but it's something to note if you start futzing with chain links or want to regear some day.

Edit: just did the math and realized the actual move in the first place is less than 1/8" anyway. OK, enough geekyness.