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Azure Virtual Desktop Pricing 2026: What AVD Really Costs
Azure Virtual Desktop costs $20–40 per user per month for standard business workloads, with no per-user AVD licensing fee for eligible Microsoft 365 customers. Your total cost breaks down into three components: Windows licensing (often free with existing M365 E3/E5), Azure compute (VMs sized for multi-session workloads), and storage (FSLogix profiles, OS disks, and networking).
AVD Pricing Breakdown: The Three Cost Components
Component 1: Windows Licensing
AVD requires Windows licenses that support multi-session. For organizations with Microsoft 365 E3/E5 or Windows 10/11 Enterprise with Software Assurance, this cost is already covered — making AVD the cheapest VDI option on a per-user basis. Windows Server 2022 RDS CALs are an alternative for task-worker scenarios. Without existing Microsoft licensing, Windows licensing can double your total cost.
Component 2: Compute (Azure VMs)
This is typically 60–80% of your total AVD cost. Common VM families: B-series burstable (B2s ~$15/mo, B2ms ~$30/mo) for task workers; D-series general purpose (D2s_v5 ~$70/mo, D4s_v5 ~$140/mo) for knowledge workers; E-series memory-optimized for developers and data analysts; N-series GPU (NC6 ~$220/mo, NV6 ~$270/mo) for graphics-intensive workloads. Azure offers 1-year reserved (~30% savings) and 3-year reserved (~50% savings) pricing versus pay-as-you-go.
Component 3: Storage and Networking
Storage costs are smaller but not negligible: OS disks (Premium SSD P10 128GB ~$6/mo per VM), FSLogix user profile containers (~$1.50/user/mo on Azure Files Premium), and egress charges ($0.087/GB for data leaving Azure). For 100 users with 10GB profiles, expect $200–500/month in managed disk storage plus $50–100/month in egress depending on usage patterns.
AVD Pricing vs Citrix vs Horizon vs Splashtop
| Feature | AVD (Microsoft) | Citrix DaaS | Omnissa Horizon | Splashtop Enterprise | Action |
|---|---|---|---|---|---|
| Pricing Model | Azure consumption (VMs + disks) | Citrix subscription + infrastructure | Horizon license + infrastructure | Per-user subscription (all-inclusive) | |
| Per-User/Month Cost | $20–40/user | $25–65/user | $20–50/user | $5–10/user | |
| 100-User Monthly Cost | ~$3,000–4,000/mo | ~$4,500–7,000/mo | ~$3,500–6,000/mo | ~$500–1,000/mo | |
| 500-User Monthly Cost | ~$12,000–18,000/mo | ~$18,000–30,000/mo | ~$14,000–24,000/mo | ~$2,000–5,000/mo | |
| Licensing Fee | Free (M365 E3/E5 eligible) | $15–30/user/mo Citrix license | $15–25/user/mo Horizon license | None — all-inclusive | |
| Compute Cost (100 Users) | ~$1,200–2,400/mo | ~$1,500–3,000/mo + Citrix ADC | ~$1,500–3,000/mo | Minimal — existing hardware | |
| Storage Cost | Managed disks: ~$200–500/mo | Storage + Citrix ADC: ~$500–1,000/mo | Storage: ~$300–800/mo | None — no profile containers | |
| Admin Overhead | Medium — Azure Portal, ARM templates | High — Citrix Cloud, policies, ADC | High — Horizon Console, UAG | Low — cloud console, auto-updates | |
| On-Premise Option | No (Azure-only) | Yes (StoreFront, Gateway) | Yes (full on-prem stack) | Yes (on-prem gateway) | |
| HIPAA BAA | Yes | Yes | Yes | Yes (BAA) | |
| SOC 2 | Yes | Yes | Yes | Yes | |
| Free Trial | Yes | Yes | Yes | Yes |
Worked Example: 100-User AVD Deployment
Assumptions: 100 knowledge workers, Microsoft 365 E3 licenses (Windows licensing already covered), D2s_v5 VMs (2 vCPU, 8GB RAM), 3-year reserved instances, standard 8-hour workday, single Azure region, Azure Files Premium for profiles.
- Compute: ~35 D2s_v5 VMs at $49/mo each (3-year reserved) = $1,715/mo
- Storage (OS Disks): 35 VMs × 128GB Premium SSD = ~$210/mo
- Storage (Profiles): 100 users × 10GB × $0.15/GB = ~$150/mo
- Networking/Egress: ~$50–100/mo
- Backup: ~$50/mo
- Total: ~$2,175–2,225/mo → ~$22/user/month
500-User Deployment
Scaled to 500 users with the same configuration:
- Compute: ~175 D2s_v5 VMs × $49 = $8,575/mo
- Storage: ~$1,800/mo (OS disks + profiles)
- Networking/Backup: ~$400–600/mo
- Total: ~$10,775–10,975/mo → ~$22/user/month
The per-user cost stays roughly constant at scale because the cost structure is linear. The key lever is VM size and user-to-VM ratio, not economies of scale.
How to Reduce AVD Costs
- Use reserved instances: 1-year reservations save ~30%; 3-year reservations save ~50% versus pay-as-you-go. If you are committed to AVD for 3+ years, this is the single biggest cost lever.
- Right-size VMs: Most task workers do not need D4s_v5. Profile actual usage and use the smallest VM that meets your requirements.
- Implement auto-shutdown: Shut down VMs outside business hours. Azure Automation can schedule shutdown/startup for a few dollars per month.
- Use B-series for task workers: B2ms provides burstable performance at one-third the cost of D-series. Sufficient for Office, web, and light LOB applications.
For related cost analyses, see our VDI cost comparison, AVD pricing explained, and Splashtop pricing guide for the lower-cost remote access alternative.
Frequently Asked Questions
How much does Azure Virtual Desktop cost per user per month?
Azure Virtual Desktop costs $20–40 per user per month for standard business workloads (Office, browser, line-of-business applications). The exact per-user cost depends on VM size, usage hours, and storage configuration. Heavy workloads requiring GPU acceleration can cost $80–150+/user/month. There is no per-user AVD licensing fee for organizations with eligible Microsoft 365 E3/E5 or Windows Enterprise licenses — your cost is purely Azure infrastructure.
What is the cheapest AVD configuration in 2026?
The cheapest viable AVD configuration uses B-series burstable VMs (B2s or B2ms) for non-persistent, light-duty desktops. Combined with premium SSD storage and a single-region deployment, this achieves approximately $15–25/user/month for task workers running Office and line-of-business applications. B-series VMs provide burstable CPU performance suitable for standard productivity workloads at roughly one-third the cost of D-series general-purpose VMs.
How much does AVD cost for 100 users?
A typical AVD deployment for 100 pooled multi-session users costs approximately $3,000–4,000 per month. This includes Azure VM compute (D2s_v5 VMs at ~$1,200–2,400/mo), managed disks (~$200–500/mo), networking, and storage. Organizations with existing Microsoft 365 E3/E5 licenses pay no additional AVD licensing fee. Dedicated (non-pooled) desktop deployments cost roughly double at $6,000–8,000/month.
What are the hidden costs of Azure Virtual Desktop?
Common hidden costs include: Azure Backup for VM snapshots ($50–200/mo depending on scale), Azure Monitor and Log Analytics for diagnostics (~$2.30/GB after free tier), FSLogix profile storage on Azure Files or Azure NetApp Files ($1–3/user/mo), egress charges for users connecting from outside Azure ($0.087/GB), and the operational cost of managing Azure infrastructure which requires dedicated Azure-skilled staff.
Is AVD cheaper than Citrix and Horizon for VDI?
AVD is typically the cheapest traditional VDI option at $20–40/user/month when you already have eligible Microsoft licensing. Citrix DaaS costs $25–65/user/month (Citrix licensing on top of infrastructure). Omnissa Horizon costs $20–50/user/month (Horizon licensing on top of infrastructure). For organizations that need only remote desktop access rather than full VDI desktops, Splashtop Enterprise at $5–10/user/month eliminates VM infrastructure entirely.