Hyper V Performance Question - compare to Bare Metal

I've tried googling for this and not found an answer

I have 8 HP Servers with Quad core CPUs, 16 GB RAM, and RAID 5 SCSI disks 6x73GB giving me 3x73GB disk space all on the C: drive

We standardised on baremetal in the configuration as there was no need to split the servers.

The apps run a custom https web service with a sql server backend. About 75% of cpu and disk activity is taken up by sql. About 15% by our application, and the remaining 10% by IIS and the OS. Sql Server uses 14-15GB RAM and the rest is OS and our app (small)

Now I'm wondering if I created a single HyperV instance within each server, and moved the software into there, how much performance degradation would I be likely to experience ? - so replacing one bare metal server with one hyperv vm hosted on that same one bare metal server. Hope that makes sense..

I kind of feel that Sql would perform much worse in a virtualised environment but thats more gut feeling than knowledge

The reason - I want to make the VM's moveable for DR and failover reasons. ATM we maintain identical servers and just move the sql databases around for DR, but I feel there would be added resilience if we could move the whole machine.

thanks