Hi @Prabha Thank you for posting your question on Microsoft Q&A and for using Azure services.
As per my understanding you are looking to set up a vm so that you can provide your users access to VMs instead of providing an Azure SQL Database to your users. Please let me know if my understanding is not correct.
I totally agree with @Bjoern Peters to deploy an Azure SQL Database. For pricing, I will suggest seeing the Azure SQL Database pricing calculator
I will also suggest reading about Compare vCore and DTU-based purchasing models of Azure SQL Database to help you choose the type of purchasing model that will best suit your need.
Regards,
Oury